Correlation Between Catalyst Media and Datagroup
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Datagroup 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 Datagroup 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 Datagroup SE, you can compare the effects of market volatilities on Catalyst Media and Datagroup 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 Datagroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Datagroup.
Diversification Opportunities for Catalyst Media and Datagroup
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Catalyst and Datagroup is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Datagroup SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagroup SE 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 Datagroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagroup SE has no effect on the direction of Catalyst Media i.e., Catalyst Media and Datagroup go up and down completely randomly.
Pair Corralation between Catalyst Media and Datagroup
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 0.81 times more return on investment than Datagroup. However, Catalyst Media Group is 1.23 times less risky than Datagroup. It trades about 0.0 of its potential returns per unit of risk. Datagroup SE is currently generating about -0.02 per unit of risk. If you would invest 9,680 in Catalyst Media Group on September 4, 2024 and sell it today you would lose (680.00) from holding Catalyst Media Group or give up 7.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Catalyst Media Group vs. Datagroup SE
Performance |
| Timeline |
| Catalyst Media Group |
| Datagroup SE |
Catalyst Media and Datagroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Datagroup
The main advantage of trading using opposite Catalyst Media and Datagroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Datagroup 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 Datagroup will offset losses from the drop in Datagroup'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 |
| Datagroup vs. Samsung Electronics Co | Datagroup vs. Samsung Electronics Co | Datagroup vs. Hyundai Motor | Datagroup 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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