Correlation Between Mavshack Publ and Catena Media
Can any of the company-specific risk be diversified away by investing in both Mavshack Publ 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 Mavshack Publ and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mavshack publ AB and Catena Media plc, you can compare the effects of market volatilities on Mavshack Publ 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 Mavshack Publ with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mavshack Publ and Catena Media.
Diversification Opportunities for Mavshack Publ and Catena Media
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mavshack and Catena is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mavshack publ AB 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 Mavshack Publ 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 Mavshack publ AB 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 Mavshack Publ i.e., Mavshack Publ and Catena Media go up and down completely randomly.
Pair Corralation between Mavshack Publ and Catena Media
Assuming the 90 days trading horizon Mavshack publ AB is expected to under-perform the Catena Media. But the stock apears to be less risky and, when comparing its historical volatility, Mavshack publ AB is 1.29 times less risky than Catena Media. The stock trades about -0.74 of its potential returns per unit of risk. The Catena Media plc is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 505.00 in Catena Media plc on August 29, 2024 and sell it today you would lose (73.00) from holding Catena Media plc or give up 14.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mavshack publ AB vs. Catena Media plc
Performance |
| Timeline |
| Mavshack publ AB |
| Catena Media plc |
Mavshack Publ and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mavshack Publ and Catena Media
The main advantage of trading using opposite Mavshack Publ and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mavshack Publ 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.| Mavshack Publ vs. Eniro AB | Mavshack Publ vs. Kancera AB | Mavshack Publ vs. Cortus Energy AB | Mavshack Publ vs. Mantex 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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