Correlation Between Catalyst Media and Beeks Trading
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Beeks Trading 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 Beeks Trading 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 Beeks Trading, you can compare the effects of market volatilities on Catalyst Media and Beeks Trading 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 Beeks Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Beeks Trading.
Diversification Opportunities for Catalyst Media and Beeks Trading
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Beeks is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading 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 Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of Catalyst Media i.e., Catalyst Media and Beeks Trading go up and down completely randomly.
Pair Corralation between Catalyst Media and Beeks Trading
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Beeks Trading. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 1.98 times less risky than Beeks Trading. The stock trades about -0.3 of its potential returns per unit of risk. The Beeks Trading is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 25,200 in Beeks Trading on September 24, 2024 and sell it today you would earn a total of 2,300 from holding Beeks Trading or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Beeks Trading
Performance |
| Timeline |
| Catalyst Media Group |
| Beeks Trading |
Catalyst Media and Beeks Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Beeks Trading
The main advantage of trading using opposite Catalyst Media and Beeks Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Beeks Trading 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 Beeks Trading will offset losses from the drop in Beeks Trading's long position.| Catalyst Media vs. mobilezone holding AG | Catalyst Media vs. Darden Restaurants | Catalyst Media vs. Charter Communications Cl | Catalyst Media vs. AIM ImmunoTech |
| Beeks Trading vs. Catalyst Media Group | Beeks Trading vs. CATLIN GROUP | Beeks Trading vs. Tamburi Investment Partners | Beeks Trading 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |