Correlation Between Edinburgh Investment and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Edinburgh Investment 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 Edinburgh Investment and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edinburgh Investment Trust and Catalyst Media Group, you can compare the effects of market volatilities on Edinburgh Investment 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 Edinburgh Investment with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edinburgh Investment and Catalyst Media.
Diversification Opportunities for Edinburgh Investment and Catalyst Media
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Edinburgh and Catalyst is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Edinburgh Investment Trust 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 Edinburgh Investment 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 Edinburgh Investment Trust 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 Edinburgh Investment i.e., Edinburgh Investment and Catalyst Media go up and down completely randomly.
Pair Corralation between Edinburgh Investment and Catalyst Media
Assuming the 90 days trading horizon Edinburgh Investment Trust is expected to generate 0.27 times more return on investment than Catalyst Media. However, Edinburgh Investment Trust is 3.64 times less risky than Catalyst Media. It trades about 0.1 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.01 per unit of risk. If you would invest 74,000 in Edinburgh Investment Trust on October 28, 2024 and sell it today you would earn a total of 1,200 from holding Edinburgh Investment Trust or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edinburgh Investment Trust vs. Catalyst Media Group
Performance |
| Timeline |
| Edinburgh Investment |
| Catalyst Media Group |
Edinburgh Investment and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edinburgh Investment and Catalyst Media
The main advantage of trading using opposite Edinburgh Investment and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edinburgh Investment 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.| Edinburgh Investment vs. Atalaya Mining | Edinburgh Investment vs. Lundin Mining Corp | Edinburgh Investment vs. Beowulf Mining | Edinburgh Investment vs. Evolution Gaming Group |
| Catalyst Media vs. Vulcan Materials Co | Catalyst Media vs. STMicroelectronics NV | Catalyst Media vs. LPKF Laser Electronics | Catalyst Media vs. Morgan Advanced Materials |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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