Correlation Between Intermediate Capital and Catena Media
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital 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 Intermediate Capital and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Capital Group and Catena Media PLC, you can compare the effects of market volatilities on Intermediate Capital 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 Intermediate Capital with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Catena Media.
Diversification Opportunities for Intermediate Capital and Catena Media
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intermediate and Catena is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group 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 Intermediate Capital 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 Intermediate Capital Group 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 Intermediate Capital i.e., Intermediate Capital and Catena Media go up and down completely randomly.
Pair Corralation between Intermediate Capital and Catena Media
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 0.44 times more return on investment than Catena Media. However, Intermediate Capital Group is 2.29 times less risky than Catena Media. It trades about 0.07 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.08 per unit of risk. If you would invest 137,114 in Intermediate Capital Group on September 1, 2024 and sell it today you would earn a total of 74,686 from holding Intermediate Capital Group or generate 54.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Catena Media PLC
Performance |
| Timeline |
| Intermediate Capital |
| Catena Media PLC |
Intermediate Capital and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Catena Media
The main advantage of trading using opposite Intermediate Capital and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital 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.| Intermediate Capital vs. Virgin Wines UK | Intermediate Capital vs. Aeorema Communications Plc | Intermediate Capital vs. Spirent Communications plc | Intermediate Capital vs. BE Semiconductor Industries |
| Catena Media vs. Uniper SE | Catena Media vs. Mulberry Group PLC | Catena Media vs. London Security Plc | Catena Media vs. Triad Group PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |