Correlation Between Catalyst Media and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on Catalyst Media and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Liontrust Asset.
Diversification Opportunities for Catalyst Media and Liontrust Asset
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Liontrust is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Catalyst Media i.e., Catalyst Media and Liontrust Asset go up and down completely randomly.
Pair Corralation between Catalyst Media and Liontrust Asset
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Liontrust Asset. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 1.48 times less risky than Liontrust Asset. The stock trades about -0.04 of its potential returns per unit of risk. The Liontrust Asset Management is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 51,232 in Liontrust Asset Management on September 14, 2024 and sell it today you would lose (2,682) from holding Liontrust Asset Management or give up 5.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Liontrust Asset Management
Performance |
| Timeline |
| Catalyst Media Group |
| Liontrust Asset Mana |
Catalyst Media and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Liontrust Asset
The main advantage of trading using opposite Catalyst Media and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Catalyst Media vs. Berkshire Hathaway | Catalyst Media vs. Chocoladefabriken Lindt Spruengli | Catalyst Media vs. Rockwood Realisation PLC | Catalyst Media vs. Toyota Motor Corp |
| Liontrust Asset vs. Catalyst Media Group | Liontrust Asset vs. CATLIN GROUP | Liontrust Asset vs. Tamburi Investment Partners | Liontrust Asset 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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