Correlation Between MOBA Network and Catena Media
Can any of the company-specific risk be diversified away by investing in both MOBA Network 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 MOBA Network and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBA Network publ and Catena Media plc, you can compare the effects of market volatilities on MOBA Network 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 MOBA Network with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBA Network and Catena Media.
Diversification Opportunities for MOBA Network and Catena Media
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MOBA and Catena is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding MOBA Network 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 MOBA Network 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 MOBA Network 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 MOBA Network i.e., MOBA Network and Catena Media go up and down completely randomly.
Pair Corralation between MOBA Network and Catena Media
Assuming the 90 days trading horizon MOBA Network publ is expected to generate 0.48 times more return on investment than Catena Media. However, MOBA Network publ is 2.07 times less risky than Catena Media. It trades about -0.19 of its potential returns per unit of risk. Catena Media plc is currently generating about -0.17 per unit of risk. If you would invest 925.00 in MOBA Network publ on September 1, 2024 and sell it today you would lose (100.00) from holding MOBA Network publ or give up 10.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
MOBA Network publ vs. Catena Media plc
Performance |
| Timeline |
| MOBA Network publ |
| Catena Media plc |
MOBA Network and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBA Network and Catena Media
The main advantage of trading using opposite MOBA Network and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBA Network 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.| MOBA Network vs. G5 Entertainment publ | MOBA Network vs. Catena Media plc | MOBA Network vs. Crunchfish AB | MOBA Network vs. FormPipe Software 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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