Correlation Between GlobalData PLC and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both GlobalData PLC and Catalyst Media 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 GlobalData PLC and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalData PLC and Catalyst Media Group, you can compare the effects of market volatilities on GlobalData PLC and Catalyst Media 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 GlobalData PLC with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalData PLC and Catalyst Media.
Diversification Opportunities for GlobalData PLC and Catalyst Media
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GlobalData and Catalyst is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding GlobalData PLC and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group and GlobalData PLC 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 GlobalData PLC are associated (or correlated) with Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of GlobalData PLC i.e., GlobalData PLC and Catalyst Media go up and down completely randomly.
Pair Corralation between GlobalData PLC and Catalyst Media
Assuming the 90 days trading horizon GlobalData PLC is expected to generate 23.87 times less return on investment than Catalyst Media. In addition to that, GlobalData PLC is 1.19 times more volatile than Catalyst Media Group. It trades about 0.01 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about 0.16 per unit of volatility. If you would invest 8,500 in Catalyst Media Group on August 25, 2024 and sell it today you would earn a total of 1,150 from holding Catalyst Media Group or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlobalData PLC vs. Catalyst Media Group
Performance |
| Timeline |
| GlobalData PLC |
| Catalyst Media Group |
GlobalData PLC and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalData PLC and Catalyst Media
The main advantage of trading using opposite GlobalData PLC and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalData PLC position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| GlobalData PLC vs. Catalyst Media Group | GlobalData PLC vs. CATLIN GROUP | GlobalData PLC vs. Tamburi Investment Partners | GlobalData PLC vs. Magnora ASA |
| Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Fannie Mae | Catalyst Media vs. Panasonic 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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