Correlation Between Catalyst Media and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Cembra Money at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Catalyst Media and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Media Group and Cembra Money Bank, you can compare the effects of market volatilities on Catalyst Media and Cembra Money and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Catalyst Media with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Cembra Money.
Diversification Opportunities for Catalyst Media and Cembra Money
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catalyst and Cembra is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank and Catalyst Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Catalyst Media Group are associated (or correlated) with Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Catalyst Media i.e., Catalyst Media and Cembra Money go up and down completely randomly.
Pair Corralation between Catalyst Media and Cembra Money
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Cembra Money. In addition to that, Catalyst Media is 1.57 times more volatile than Cembra Money Bank. It trades about -0.03 of its total potential returns per unit of risk. Cembra Money Bank is currently generating about 0.05 per unit of volatility. If you would invest 6,716 in Cembra Money Bank on September 4, 2024 and sell it today you would earn a total of 1,413 from holding Cembra Money Bank or generate 21.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Catalyst Media Group vs. Cembra Money Bank
Performance |
| Timeline |
| Catalyst Media Group |
| Cembra Money Bank |
Catalyst Media and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Cembra Money
The main advantage of trading using opposite Catalyst Media and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Cembra Money can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cembra Money will offset losses from the drop in Cembra Money's long position.| Catalyst Media vs. STMicroelectronics NV | Catalyst Media vs. TR Property Investment | Catalyst Media vs. Monks Investment Trust | Catalyst Media vs. Smithson Investment Trust |
| Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Hyundai Motor | Cembra Money vs. Toyota Motor Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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