Correlation Between Catalyst Media and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Grand Vision 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 Grand Vision 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 Grand Vision Media, you can compare the effects of market volatilities on Catalyst Media and Grand Vision 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 Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Grand Vision.
Diversification Opportunities for Catalyst Media and Grand Vision
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Grand is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media 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 Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Catalyst Media i.e., Catalyst Media and Grand Vision go up and down completely randomly.
Pair Corralation between Catalyst Media and Grand Vision
Assuming the 90 days trading horizon Catalyst Media is expected to generate 2371.5 times less return on investment than Grand Vision. But when comparing it to its historical volatility, Catalyst Media Group is 20.66 times less risky than Grand Vision. It trades about 0.0 of its potential returns per unit of risk. Grand Vision Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Grand Vision Media on August 30, 2024 and sell it today you would earn a total of 78.00 from holding Grand Vision Media or generate 390.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Catalyst Media Group vs. Grand Vision Media
Performance |
| Timeline |
| Catalyst Media Group |
| Grand Vision Media |
Catalyst Media and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Grand Vision
The main advantage of trading using opposite Catalyst Media and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.| Catalyst Media vs. Hyundai Motor | Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Halyk Bank of |
| Grand Vision vs. Toyota Motor Corp | Grand Vision vs. SoftBank Group Corp | Grand Vision vs. OTP Bank Nyrt | Grand Vision vs. Las Vegas Sands |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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