Correlation Between Catalyst Media and Vietnam Enterprise
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Vietnam Enterprise 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 Vietnam Enterprise 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 Vietnam Enterprise Investments, you can compare the effects of market volatilities on Catalyst Media and Vietnam Enterprise 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 Vietnam Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Vietnam Enterprise.
Diversification Opportunities for Catalyst Media and Vietnam Enterprise
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Vietnam is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Vietnam Enterprise Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Enterprise 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 Vietnam Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Enterprise has no effect on the direction of Catalyst Media i.e., Catalyst Media and Vietnam Enterprise go up and down completely randomly.
Pair Corralation between Catalyst Media and Vietnam Enterprise
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 3.5 times more return on investment than Vietnam Enterprise. However, Catalyst Media is 3.5 times more volatile than Vietnam Enterprise Investments. It trades about -0.01 of its potential returns per unit of risk. Vietnam Enterprise Investments is currently generating about -0.09 per unit of risk. If you would invest 7,600 in Catalyst Media Group on November 3, 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Catalyst Media Group vs. Vietnam Enterprise Investments
Performance |
| Timeline |
| Catalyst Media Group |
| Vietnam Enterprise |
Catalyst Media and Vietnam Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Vietnam Enterprise
The main advantage of trading using opposite Catalyst Media and Vietnam Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Vietnam Enterprise 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 Vietnam Enterprise will offset losses from the drop in Vietnam Enterprise's long position.| Catalyst Media vs. Take Two Interactive Software | Catalyst Media vs. Scandic Hotels Group | Catalyst Media vs. Allianz Technology Trust | Catalyst Media vs. Roper Technologies |
| Vietnam Enterprise vs. Infineon Technologies AG | Vietnam Enterprise vs. Adriatic Metals | Vietnam Enterprise vs. URU Metals | Vietnam Enterprise vs. Westlake Chemical Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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