Correlation Between Catalyst Media and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Bellevue Healthcare 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 Bellevue Healthcare 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 Bellevue Healthcare Trust, you can compare the effects of market volatilities on Catalyst Media and Bellevue Healthcare 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 Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Bellevue Healthcare.
Diversification Opportunities for Catalyst Media and Bellevue Healthcare
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Bellevue is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Bellevue Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Healthcare Trust 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 Bellevue Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Healthcare Trust has no effect on the direction of Catalyst Media i.e., Catalyst Media and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Catalyst Media and Bellevue Healthcare
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Bellevue Healthcare. In addition to that, Catalyst Media is 1.27 times more volatile than Bellevue Healthcare Trust. It trades about -0.01 of its total potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about 0.04 per unit of volatility. If you would invest 12,423 in Bellevue Healthcare Trust on August 26, 2024 and sell it today you would earn a total of 1,217 from holding Bellevue Healthcare Trust or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Catalyst Media Group |
| Bellevue Healthcare Trust |
Catalyst Media and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Bellevue Healthcare
The main advantage of trading using opposite Catalyst Media and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Bellevue Healthcare 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 Bellevue Healthcare will offset losses from the drop in Bellevue Healthcare's long position.| Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Fannie Mae | Catalyst Media vs. Panasonic Corp |
| Bellevue Healthcare vs. Catalyst Media Group | Bellevue Healthcare vs. Oncimmune Holdings plc | Bellevue Healthcare vs. Invesco Health Care | Bellevue Healthcare vs. Coor Service Management |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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