Correlation Between Catalyst Media and Mineral Financial
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Mineral Financial 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 Mineral Financial 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 Mineral Financial Investments, you can compare the effects of market volatilities on Catalyst Media and Mineral Financial 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 Mineral Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Mineral Financial.
Diversification Opportunities for Catalyst Media and Mineral Financial
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Mineral is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Mineral Financial Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mineral Financial 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 Mineral Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mineral Financial has no effect on the direction of Catalyst Media i.e., Catalyst Media and Mineral Financial go up and down completely randomly.
Pair Corralation between Catalyst Media and Mineral Financial
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Mineral Financial. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 1.09 times less risky than Mineral Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Mineral Financial Investments is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,275 in Mineral Financial Investments on October 23, 2024 and sell it today you would earn a total of 275.00 from holding Mineral Financial Investments or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Catalyst Media Group vs. Mineral Financial Investments
Performance |
| Timeline |
| Catalyst Media Group |
| Mineral Financial |
Catalyst Media and Mineral Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Mineral Financial
The main advantage of trading using opposite Catalyst Media and Mineral Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Mineral Financial 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 Mineral Financial will offset losses from the drop in Mineral Financial's long position.| Catalyst Media vs. Veolia Environnement VE | Catalyst Media vs. Schroders Investment Trusts | Catalyst Media vs. EJF Investments | Catalyst Media vs. Vietnam Enterprise Investments |
| Mineral Financial vs. Catalyst Media Group | Mineral Financial vs. CATLIN GROUP | Mineral Financial vs. Tamburi Investment Partners | Mineral Financial 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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