Correlation Between Deltex Medical and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Deltex Medical 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 Deltex Medical and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deltex Medical Group and Catalyst Media Group, you can compare the effects of market volatilities on Deltex Medical 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 Deltex Medical with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deltex Medical and Catalyst Media.
Diversification Opportunities for Deltex Medical and Catalyst Media
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deltex and Catalyst is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Deltex Medical Group 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 Deltex Medical 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 Deltex Medical Group 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 Deltex Medical i.e., Deltex Medical and Catalyst Media go up and down completely randomly.
Pair Corralation between Deltex Medical and Catalyst Media
Assuming the 90 days trading horizon Deltex Medical Group is expected to under-perform the Catalyst Media. In addition to that, Deltex Medical is 1.51 times more volatile than Catalyst Media Group. It trades about -0.22 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about 0.01 per unit of volatility. If you would invest 9,000 in Catalyst Media Group on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Catalyst Media Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deltex Medical Group vs. Catalyst Media Group
Performance |
| Timeline |
| Deltex Medical Group |
| Catalyst Media Group |
Deltex Medical and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deltex Medical and Catalyst Media
The main advantage of trading using opposite Deltex Medical and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deltex Medical 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.| Deltex Medical vs. Toyota Motor Corp | Deltex Medical vs. SoftBank Group Corp | Deltex Medical vs. OTP Bank Nyrt | Deltex Medical vs. Las Vegas Sands |
| Catalyst Media vs. Hyundai Motor | Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Halyk Bank of |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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