Correlation Between Catalyst Media and Odyssean Investment
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Odyssean Investment 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 Odyssean Investment 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 Odyssean Investment Trust, you can compare the effects of market volatilities on Catalyst Media and Odyssean Investment 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 Odyssean Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Odyssean Investment.
Diversification Opportunities for Catalyst Media and Odyssean Investment
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Odyssean is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Odyssean Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssean Investment Trust 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 Odyssean Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssean Investment Trust has no effect on the direction of Catalyst Media i.e., Catalyst Media and Odyssean Investment go up and down completely randomly.
Pair Corralation between Catalyst Media and Odyssean Investment
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 1.52 times more return on investment than Odyssean Investment. However, Catalyst Media is 1.52 times more volatile than Odyssean Investment Trust. It trades about 0.0 of its potential returns per unit of risk. Odyssean Investment Trust is currently generating about -0.01 per unit of risk. If you would invest 9,680 in Catalyst Media Group on August 30, 2024 and sell it today you would lose (680.00) from holding Catalyst Media Group or give up 7.02% 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. Odyssean Investment Trust
Performance |
| Timeline |
| Catalyst Media Group |
| Odyssean Investment Trust |
Catalyst Media and Odyssean Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Odyssean Investment
The main advantage of trading using opposite Catalyst Media and Odyssean Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Odyssean Investment 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 Odyssean Investment will offset losses from the drop in Odyssean Investment's long position.| Catalyst Media vs. Walmart | Catalyst Media vs. BYD Co | Catalyst Media vs. Volkswagen AG | Catalyst Media vs. Volkswagen AG Non Vtg |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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