Correlation Between Catalyst Media and Argo Group
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Argo 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 Argo 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 Argo Group Limited, you can compare the effects of market volatilities on Catalyst Media and Argo 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Argo Group.
Diversification Opportunities for Catalyst Media and Argo Group
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Argo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Argo Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group Limited 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 Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group Limited has no effect on the direction of Catalyst Media i.e., Catalyst Media and Argo Group go up and down completely randomly.
Pair Corralation between Catalyst Media and Argo Group
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Argo Group. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 2.35 times less risky than Argo Group. The stock trades about -0.07 of its potential returns per unit of risk. The Argo Group Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Argo Group Limited on December 4, 2024 and sell it today you would lose (25.00) from holding Argo Group Limited or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Catalyst Media Group vs. Argo Group Limited
Performance |
| Timeline |
| Catalyst Media Group |
| Argo Group Limited |
Risk-Adjusted Performance
Good
Weak | Strong |
Catalyst Media and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Argo Group
The main advantage of trading using opposite Catalyst Media and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Argo 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 Argo Group will offset losses from the drop in Argo Group's long position.| Catalyst Media vs. Coeur Mining | Catalyst Media vs. Metals Exploration Plc | Catalyst Media vs. Cars Inc | Catalyst Media vs. St Galler Kantonalbank |
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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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