Correlation Between G5 Entertainment and Catena Media
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and Catena 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 G5 Entertainment and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment publ and Catena Media plc, you can compare the effects of market volatilities on G5 Entertainment and Catena 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 G5 Entertainment with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and Catena Media.
Diversification Opportunities for G5 Entertainment and Catena Media
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between G5EN and Catena is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment publ and Catena Media plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media plc and G5 Entertainment 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 G5 Entertainment publ are associated (or correlated) with Catena Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media plc has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and Catena Media go up and down completely randomly.
Pair Corralation between G5 Entertainment and Catena Media
Assuming the 90 days trading horizon G5 Entertainment publ is expected to generate 0.84 times more return on investment than Catena Media. However, G5 Entertainment publ is 1.18 times less risky than Catena Media. It trades about 0.33 of its potential returns per unit of risk. Catena Media plc is currently generating about -0.01 per unit of risk. If you would invest 11,740 in G5 Entertainment publ on November 4, 2024 and sell it today you would earn a total of 1,260 from holding G5 Entertainment publ or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment publ vs. Catena Media plc
Performance |
| Timeline |
| G5 Entertainment publ |
| Catena Media plc |
G5 Entertainment and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and Catena Media
The main advantage of trading using opposite G5 Entertainment and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, Catena 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 Catena Media will offset losses from the drop in Catena Media's long position.| G5 Entertainment vs. Stillfront Group AB | G5 Entertainment vs. Paradox Interactive AB | G5 Entertainment vs. Catena Media plc | G5 Entertainment vs. Betsson AB |
| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |