Correlation Between Catena Media and CoinShares International
Can any of the company-specific risk be diversified away by investing in both Catena Media and CoinShares International 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 CoinShares International 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 CoinShares International, you can compare the effects of market volatilities on Catena Media and CoinShares International 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 CoinShares International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and CoinShares International.
Diversification Opportunities for Catena Media and CoinShares International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catena and CoinShares is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media plc and CoinShares International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares International 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 CoinShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares International has no effect on the direction of Catena Media i.e., Catena Media and CoinShares International go up and down completely randomly.
Pair Corralation between Catena Media and CoinShares International
Assuming the 90 days trading horizon Catena Media plc is expected to under-perform the CoinShares International. But the stock apears to be less risky and, when comparing its historical volatility, Catena Media plc is 1.01 times less risky than CoinShares International. The stock trades about -0.17 of its potential returns per unit of risk. The CoinShares International is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 5,320 in CoinShares International on September 1, 2024 and sell it today you would earn a total of 3,160 from holding CoinShares International or generate 59.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Catena Media plc vs. CoinShares International
Performance |
| Timeline |
| Catena Media plc |
| CoinShares International |
Catena Media and CoinShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena Media and CoinShares International
The main advantage of trading using opposite Catena Media and CoinShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, CoinShares International 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 CoinShares International will offset losses from the drop in CoinShares International's long position.| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution AB |
| CoinShares International vs. Cint Group AB | CoinShares International vs. Bonesupport Holding AB | CoinShares International vs. Catena Media plc | CoinShares International vs. Hexatronic Group 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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