Correlation Between Marks and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Marks 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 Marks and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marks and Spencer and Catalyst Media Group, you can compare the effects of market volatilities on Marks 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 Marks with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marks and Catalyst Media.
Diversification Opportunities for Marks and Catalyst Media
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marks and Catalyst is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Marks and Spencer 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 Marks 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 Marks and Spencer 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 Marks i.e., Marks and Catalyst Media go up and down completely randomly.
Pair Corralation between Marks and Catalyst Media
Assuming the 90 days trading horizon Marks and Spencer is expected to generate 0.77 times more return on investment than Catalyst Media. However, Marks and Spencer is 1.3 times less risky than Catalyst Media. It trades about 0.02 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.37 per unit of risk. If you would invest 37,801 in Marks and Spencer on September 23, 2024 and sell it today you would earn a total of 139.00 from holding Marks and Spencer or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marks and Spencer vs. Catalyst Media Group
Performance |
| Timeline |
| Marks and Spencer |
| Catalyst Media Group |
Marks and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marks and Catalyst Media
The main advantage of trading using opposite Marks and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks 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.| Marks vs. Catalyst Media Group | Marks vs. CATLIN GROUP | Marks vs. Tamburi Investment Partners | Marks vs. Magnora ASA |
| Catalyst Media vs. Cellnex Telecom SA | Catalyst Media vs. CAP LEASE AVIATION | Catalyst Media vs. Zoom Video Communications | Catalyst Media vs. Compagnie Plastic Omnium |
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 CEOs Directory module to screen CEOs from public companies around the world.
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