Correlation Between Catena Media and Terranet
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By analyzing existing cross correlation between Catena Media plc and Terranet AB, you can compare the effects of market volatilities on Catena Media and Terranet 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 Terranet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and Terranet.
Diversification Opportunities for Catena Media and Terranet
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catena and Terranet is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media plc and Terranet AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terranet 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 Terranet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terranet AB has no effect on the direction of Catena Media i.e., Catena Media and Terranet go up and down completely randomly.
Pair Corralation between Catena Media and Terranet
Assuming the 90 days trading horizon Catena Media plc is expected to under-perform the Terranet. In addition to that, Catena Media is 1.06 times more volatile than Terranet AB. It trades about -0.11 of its total potential returns per unit of risk. Terranet AB is currently generating about -0.04 per unit of volatility. If you would invest 13.00 in Terranet AB on November 29, 2024 and sell it today you would lose (1.00) from holding Terranet AB or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena Media plc vs. Terranet AB
Performance |
| Timeline |
| Catena Media plc |
| Terranet AB |
Catena Media and Terranet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena Media and Terranet
The main advantage of trading using opposite Catena Media and Terranet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, Terranet 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 Terranet will offset losses from the drop in Terranet's long position.| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution AB |
| Terranet vs. Spectrumone publ AB | Terranet vs. Media and Games | Terranet vs. Mantex AB | Terranet vs. Sivers IMA Holding |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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