Correlation Between Catalyst Media and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Oakley Capital 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 Oakley Capital 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 Oakley Capital Investments, you can compare the effects of market volatilities on Catalyst Media and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Oakley Capital.
Diversification Opportunities for Catalyst Media and Oakley Capital
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and Oakley is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Catalyst Media i.e., Catalyst Media and Oakley Capital go up and down completely randomly.
Pair Corralation between Catalyst Media and Oakley Capital
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 2.96 times more return on investment than Oakley Capital. However, Catalyst Media is 2.96 times more volatile than Oakley Capital Investments. It trades about -0.01 of its potential returns per unit of risk. Oakley Capital Investments is currently generating about -0.04 per unit of risk. If you would invest 7,600 in Catalyst Media Group on October 24, 2024 and sell it today you would lose (100.00) from holding Catalyst Media Group or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Oakley Capital Investments
Performance |
| Timeline |
| Catalyst Media Group |
| Oakley Capital Inves |
Catalyst Media and Oakley Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Oakley Capital
The main advantage of trading using opposite Catalyst Media and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital's long position.| Catalyst Media vs. Qurate Retail Series | Catalyst Media vs. Spirent Communications plc | Catalyst Media vs. Charter Communications Cl | Catalyst Media vs. Bloomsbury Publishing Plc |
| Oakley Capital vs. Catalyst Media Group | Oakley Capital vs. CATLIN GROUP | Oakley Capital vs. Tamburi Investment Partners | Oakley Capital 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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