Correlation Between Miton UK and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Miton UK 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 Miton UK and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miton UK MicroCap and Catalyst Media Group, you can compare the effects of market volatilities on Miton UK 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 Miton UK with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miton UK and Catalyst Media.
Diversification Opportunities for Miton UK and Catalyst Media
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Miton and Catalyst is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Miton UK MicroCap 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 Miton UK 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 Miton UK MicroCap 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 Miton UK i.e., Miton UK and Catalyst Media go up and down completely randomly.
Pair Corralation between Miton UK and Catalyst Media
Assuming the 90 days trading horizon Miton UK MicroCap is expected to under-perform the Catalyst Media. But the stock apears to be less risky and, when comparing its historical volatility, Miton UK MicroCap is 1.73 times less risky than Catalyst Media. The stock trades about -0.06 of its potential returns per unit of risk. The Catalyst Media Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,680 in Catalyst Media Group on August 30, 2024 and sell it today you would lose (680.00) from holding Catalyst Media Group or give up 7.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miton UK MicroCap vs. Catalyst Media Group
Performance |
| Timeline |
| Miton UK MicroCap |
| Catalyst Media Group |
Miton UK and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miton UK and Catalyst Media
The main advantage of trading using opposite Miton UK and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miton UK 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.| Miton UK vs. Sabre Insurance Group | Miton UK vs. Vienna Insurance Group | Miton UK vs. Schroders Investment Trusts | Miton UK vs. Herald Investment Trust |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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