Correlation Between Primorus Investments and Catena Media
Can any of the company-specific risk be diversified away by investing in both Primorus Investments 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 Primorus Investments and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primorus Investments plc and Catena Media PLC, you can compare the effects of market volatilities on Primorus Investments 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 Primorus Investments with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primorus Investments and Catena Media.
Diversification Opportunities for Primorus Investments and Catena Media
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Primorus and Catena is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Primorus Investments plc 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 Primorus Investments 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 Primorus Investments plc 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 Primorus Investments i.e., Primorus Investments and Catena Media go up and down completely randomly.
Pair Corralation between Primorus Investments and Catena Media
Assuming the 90 days trading horizon Primorus Investments plc is expected to generate 1.19 times more return on investment than Catena Media. However, Primorus Investments is 1.19 times more volatile than Catena Media PLC. It trades about 0.06 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.07 per unit of risk. If you would invest 153.00 in Primorus Investments plc on August 24, 2024 and sell it today you would earn a total of 247.00 from holding Primorus Investments plc or generate 161.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Primorus Investments plc vs. Catena Media PLC
Performance |
| Timeline |
| Primorus Investments plc |
| Catena Media PLC |
Primorus Investments and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primorus Investments and Catena Media
The main advantage of trading using opposite Primorus Investments and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primorus Investments 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.| Primorus Investments vs. Home Depot | Primorus Investments vs. River and Mercantile | Primorus Investments vs. Chrysalis Investments | Primorus Investments vs. Sherborne Investors Guernsey |
| Catena Media vs. Primorus Investments plc | Catena Media vs. International Consolidated Airlines | Catena Media vs. Batm Advanced Communications | Catena Media vs. Gamma Communications PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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