Correlation Between One Media and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both One Media 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 One Media and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and Catalyst Media Group, you can compare the effects of market volatilities on One Media 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 One Media with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Catalyst Media.
Diversification Opportunities for One Media and Catalyst Media
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between One and Catalyst is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP 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 One Media 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 One Media iP 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 One Media i.e., One Media and Catalyst Media go up and down completely randomly.
Pair Corralation between One Media and Catalyst Media
Assuming the 90 days trading horizon One Media iP is expected to generate 0.43 times more return on investment than Catalyst Media. However, One Media iP is 2.31 times less risky than Catalyst Media. It trades about 0.21 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.01 per unit of risk. If you would invest 425.00 in One Media iP on November 3, 2024 and sell it today you would earn a total of 25.00 from holding One Media iP or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
One Media iP vs. Catalyst Media Group
Performance |
| Timeline |
| One Media iP |
| Catalyst Media Group |
One Media and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Catalyst Media
The main advantage of trading using opposite One Media and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media 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.| One Media vs. Omega Healthcare Investors | One Media vs. Ashtead Technology Holdings | One Media vs. Solstad Offshore ASA | One Media vs. Worldwide Healthcare Trust |
| Catalyst Media vs. Take Two Interactive Software | Catalyst Media vs. Scandic Hotels Group | Catalyst Media vs. Allianz Technology Trust | Catalyst Media vs. Roper Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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