Correlation Between Marwyn Value and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Marwyn Value 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 Marwyn Value and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marwyn Value Investors and Catalyst Media Group, you can compare the effects of market volatilities on Marwyn Value 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 Marwyn Value with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marwyn Value and Catalyst Media.
Diversification Opportunities for Marwyn Value and Catalyst Media
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marwyn and Catalyst is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Marwyn Value Investors 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 Marwyn Value 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 Marwyn Value Investors 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 Marwyn Value i.e., Marwyn Value and Catalyst Media go up and down completely randomly.
Pair Corralation between Marwyn Value and Catalyst Media
Assuming the 90 days trading horizon Marwyn Value Investors is expected to generate 0.2 times more return on investment than Catalyst Media. However, Marwyn Value Investors is 5.1 times less risky than Catalyst Media. It trades about -0.4 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.17 per unit of risk. If you would invest 8,998 in Marwyn Value Investors on September 1, 2024 and sell it today you would lose (398.00) from holding Marwyn Value Investors or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marwyn Value Investors vs. Catalyst Media Group
Performance |
| Timeline |
| Marwyn Value Investors |
| Catalyst Media Group |
Marwyn Value and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marwyn Value and Catalyst Media
The main advantage of trading using opposite Marwyn Value and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marwyn Value 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.| Marwyn Value vs. Toyota Motor Corp | Marwyn Value vs. SoftBank Group Corp | Marwyn Value vs. OTP Bank Nyrt | Marwyn Value vs. Las Vegas Sands |
| Catalyst Media vs. Samsung Electronics Co | Catalyst Media vs. Samsung Electronics Co | Catalyst Media vs. Hyundai Motor | Catalyst Media vs. Toyota Motor Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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