Correlation Between Catalyst Media and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Blackstone Loan 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 Blackstone Loan 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 Blackstone Loan Financing, you can compare the effects of market volatilities on Catalyst Media and Blackstone Loan 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 Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Blackstone Loan.
Diversification Opportunities for Catalyst Media and Blackstone Loan
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Catalyst and Blackstone is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Catalyst Media i.e., Catalyst Media and Blackstone Loan go up and down completely randomly.
Pair Corralation between Catalyst Media and Blackstone Loan
Assuming the 90 days trading horizon Catalyst Media is expected to generate 2.03 times less return on investment than Blackstone Loan. In addition to that, Catalyst Media is 1.48 times more volatile than Blackstone Loan Financing. It trades about 0.06 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.18 per unit of volatility. If you would invest 5,698 in Blackstone Loan Financing on September 3, 2024 and sell it today you would earn a total of 802.00 from holding Blackstone Loan Financing or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Blackstone Loan Financing
Performance |
| Timeline |
| Catalyst Media Group |
| Blackstone Loan Financing |
Catalyst Media and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Blackstone Loan
The main advantage of trading using opposite Catalyst Media and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan's long position.| Catalyst Media vs. Smithson Investment Trust | Catalyst Media vs. Kinnevik Investment AB | Catalyst Media vs. New Residential Investment | Catalyst Media vs. The Mercantile Investment |
| Blackstone Loan vs. Catalyst Media Group | Blackstone Loan vs. CATLIN GROUP | Blackstone Loan vs. Magnora ASA | Blackstone Loan vs. RTW Venture Fund |
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.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |