Correlation Between Catena Media and AcadeMedia
Can any of the company-specific risk be diversified away by investing in both Catena Media and AcadeMedia 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 Catena Media and AcadeMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catena Media plc and AcadeMedia AB, you can compare the effects of market volatilities on Catena Media and AcadeMedia 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 Catena Media with a short position of AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and AcadeMedia.
Diversification Opportunities for Catena Media and AcadeMedia
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Catena and AcadeMedia is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media plc and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and Catena 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 Catena Media plc are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Catena Media i.e., Catena Media and AcadeMedia go up and down completely randomly.
Pair Corralation between Catena Media and AcadeMedia
Assuming the 90 days trading horizon Catena Media plc is expected to under-perform the AcadeMedia. In addition to that, Catena Media is 4.91 times more volatile than AcadeMedia AB. It trades about -0.17 of its total potential returns per unit of risk. AcadeMedia AB is currently generating about -0.29 per unit of volatility. If you would invest 6,382 in AcadeMedia AB on September 1, 2024 and sell it today you would lose (422.00) from holding AcadeMedia AB or give up 6.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena Media plc vs. AcadeMedia AB
Performance |
| Timeline |
| Catena Media plc |
| AcadeMedia AB |
Catena Media and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena Media and AcadeMedia
The main advantage of trading using opposite Catena Media and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia's long position.| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution AB |
| AcadeMedia vs. Inwido AB | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group AB | AcadeMedia vs. Bravida Holding AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |