Correlation Between Catena Media and Spectrumone Publ
Can any of the company-specific risk be diversified away by investing in both Catena Media and Spectrumone Publ 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 Spectrumone Publ 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 Spectrumone publ AB, you can compare the effects of market volatilities on Catena Media and Spectrumone Publ 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 Spectrumone Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and Spectrumone Publ.
Diversification Opportunities for Catena Media and Spectrumone Publ
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catena and Spectrumone is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media plc and Spectrumone publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrumone publ 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 Spectrumone Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrumone publ has no effect on the direction of Catena Media i.e., Catena Media and Spectrumone Publ go up and down completely randomly.
Pair Corralation between Catena Media and Spectrumone Publ
Assuming the 90 days trading horizon Catena Media plc is expected to under-perform the Spectrumone Publ. But the stock apears to be less risky and, when comparing its historical volatility, Catena Media plc is 1.12 times less risky than Spectrumone Publ. The stock trades about -0.06 of its potential returns per unit of risk. The Spectrumone publ AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Spectrumone publ AB on September 3, 2024 and sell it today you would lose (8.00) from holding Spectrumone publ AB or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena Media plc vs. Spectrumone publ AB
Performance |
| Timeline |
| Catena Media plc |
| Spectrumone publ |
Catena Media and Spectrumone Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena Media and Spectrumone Publ
The main advantage of trading using opposite Catena Media and Spectrumone Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, Spectrumone Publ 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 Spectrumone Publ will offset losses from the drop in Spectrumone Publ's long position.| Catena Media vs. Kambi Group PLC | Catena Media vs. Betsson AB | Catena Media vs. Evolution AB | Catena Media vs. Embracer Group AB |
| Spectrumone Publ vs. Kancera AB | Spectrumone Publ vs. Terranet AB | Spectrumone Publ vs. Divio Technologies AB | Spectrumone Publ vs. Cantargia 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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