Correlation Between Catalyst Media and Tower Resources
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Tower Resources 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 Tower Resources 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 Tower Resources plc, you can compare the effects of market volatilities on Catalyst Media and Tower Resources 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 Tower Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Tower Resources.
Diversification Opportunities for Catalyst Media and Tower Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Tower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Tower Resources plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Resources plc 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 Tower Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Resources plc has no effect on the direction of Catalyst Media i.e., Catalyst Media and Tower Resources go up and down completely randomly.
Pair Corralation between Catalyst Media and Tower Resources
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 3.24 times more return on investment than Tower Resources. However, Catalyst Media is 3.24 times more volatile than Tower Resources plc. It trades about -0.09 of its potential returns per unit of risk. Tower Resources plc is currently generating about -0.71 per unit of risk. If you would invest 7,125 in Catalyst Media Group on November 9, 2024 and sell it today you would lose (625.00) from holding Catalyst Media Group or give up 8.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 9.09% |
| Values | Daily Returns |
Catalyst Media Group vs. Tower Resources plc
Performance |
| Timeline |
| Catalyst Media Group |
| Tower Resources plc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Catalyst Media and Tower Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Tower Resources
The main advantage of trading using opposite Catalyst Media and Tower Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Tower Resources 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 Tower Resources will offset losses from the drop in Tower Resources' long position.| Catalyst Media vs. AMG Advanced Metallurgical | Catalyst Media vs. Cornish Metals | Catalyst Media vs. Creo Medical Group | Catalyst Media vs. Bisichi Mining PLC |
| Tower Resources vs. Hollywood Bowl Group | Tower Resources vs. Grand Vision Media | Tower Resources vs. Amedeo Air Four | Tower Resources vs. Wizz Air Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |