Correlation Between PCI PAL and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both PCI PAL 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 PCI PAL and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PCI PAL PLC and Catalyst Media Group, you can compare the effects of market volatilities on PCI PAL 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 PCI PAL with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCI PAL and Catalyst Media.
Diversification Opportunities for PCI PAL and Catalyst Media
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PCI and Catalyst is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PCI PAL PLC 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 PCI PAL 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 PCI PAL PLC 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 PCI PAL i.e., PCI PAL and Catalyst Media go up and down completely randomly.
Pair Corralation between PCI PAL and Catalyst Media
Assuming the 90 days trading horizon PCI PAL PLC is expected to generate 1.07 times more return on investment than Catalyst Media. However, PCI PAL is 1.07 times more volatile than Catalyst Media Group. It trades about 0.1 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 5,650 in PCI PAL PLC on September 26, 2024 and sell it today you would earn a total of 550.00 from holding PCI PAL PLC or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
PCI PAL PLC vs. Catalyst Media Group
Performance |
| Timeline |
| PCI PAL PLC |
| Catalyst Media Group |
PCI PAL and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCI PAL and Catalyst Media
The main advantage of trading using opposite PCI PAL and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCI PAL 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.| PCI PAL vs. Catalyst Media Group | PCI PAL vs. CATLIN GROUP | PCI PAL vs. Tamburi Investment Partners | PCI PAL vs. Magnora ASA |
| Catalyst Media vs. Samsung Electronics Co | Catalyst Media vs. Samsung Electronics Co | Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. Reliance Industries Ltd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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