Correlation Between Catalyst Media and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Everyman Media 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 Everyman Media 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 Everyman Media Group, you can compare the effects of market volatilities on Catalyst Media and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Everyman Media.
Diversification Opportunities for Catalyst Media and Everyman Media
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Everyman is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Catalyst Media i.e., Catalyst Media and Everyman Media go up and down completely randomly.
Pair Corralation between Catalyst Media and Everyman Media
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Everyman Media. In addition to that, Catalyst Media is 1.52 times more volatile than Everyman Media Group. It trades about -0.41 of its total potential returns per unit of risk. Everyman Media Group is currently generating about -0.11 per unit of volatility. If you would invest 5,475 in Everyman Media Group on September 12, 2024 and sell it today you would lose (175.00) from holding Everyman Media Group or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Everyman Media Group
Performance |
| Timeline |
| Catalyst Media Group |
| Everyman Media Group |
Catalyst Media and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Everyman Media
The main advantage of trading using opposite Catalyst Media and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Catalyst Media vs. Charter Communications Cl | Catalyst Media vs. Cairo Communication SpA | Catalyst Media vs. Gamma Communications PLC | Catalyst Media vs. Lowland Investment Co |
| Everyman Media vs. Catalyst Media Group | Everyman Media vs. CATLIN GROUP | Everyman Media vs. Tamburi Investment Partners | Everyman Media 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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