Correlation Between Catalyst Media and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Atalaya Mining 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 Atalaya Mining 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 Atalaya Mining, you can compare the effects of market volatilities on Catalyst Media and Atalaya Mining 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 Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Atalaya Mining.
Diversification Opportunities for Catalyst Media and Atalaya Mining
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Catalyst and Atalaya is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining 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 Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Catalyst Media i.e., Catalyst Media and Atalaya Mining go up and down completely randomly.
Pair Corralation between Catalyst Media and Atalaya Mining
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Atalaya Mining. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 1.28 times less risky than Atalaya Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Atalaya Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 35,414 in Atalaya Mining on November 2, 2024 and sell it today you would lose (714.00) from holding Atalaya Mining or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Catalyst Media Group vs. Atalaya Mining
Performance |
| Timeline |
| Catalyst Media Group |
| Atalaya Mining |
Catalyst Media and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Atalaya Mining
The main advantage of trading using opposite Catalyst Media and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Atalaya Mining 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.| Catalyst Media vs. Liontrust Asset Management | Catalyst Media vs. Zoom Video Communications | Catalyst Media vs. Sabre Insurance Group | Catalyst Media vs. Waste Management |
| Atalaya Mining vs. Lundin Mining Corp | Atalaya Mining vs. Blackrock World Mining | Atalaya Mining vs. Host Hotels Resorts | Atalaya Mining vs. Playtech Plc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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