Correlation Between Catalyst Media and Argentex Group
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Argentex Group 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 Argentex Group 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 Argentex Group PLC, you can compare the effects of market volatilities on Catalyst Media and Argentex Group 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 Argentex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Argentex Group.
Diversification Opportunities for Catalyst Media and Argentex Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Argentex is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Argentex Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentex Group PLC 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 Argentex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentex Group PLC has no effect on the direction of Catalyst Media i.e., Catalyst Media and Argentex Group go up and down completely randomly.
Pair Corralation between Catalyst Media and Argentex Group
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Argentex Group. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 1.62 times less risky than Argentex Group. The stock trades about -0.41 of its potential returns per unit of risk. The Argentex Group PLC is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,990 in Argentex Group PLC on September 13, 2024 and sell it today you would lose (80.00) from holding Argentex Group PLC or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Catalyst Media Group vs. Argentex Group PLC
Performance |
| Timeline |
| Catalyst Media Group |
| Argentex Group PLC |
Catalyst Media and Argentex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Argentex Group
The main advantage of trading using opposite Catalyst Media and Argentex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Argentex Group 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 Argentex Group will offset losses from the drop in Argentex Group's long position.| Catalyst Media vs. Zanaga Iron Ore | Catalyst Media vs. Alior Bank SA | Catalyst Media vs. Symphony Environmental Technologies | Catalyst Media vs. Ironveld Plc |
| Argentex Group vs. Catalyst Media Group | Argentex Group vs. CATLIN GROUP | Argentex Group vs. Tamburi Investment Partners | Argentex Group vs. Magnora ASA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |