Correlation Between Symphony Environmental and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental 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 Symphony Environmental and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Environmental Technologies and Catalyst Media Group, you can compare the effects of market volatilities on Symphony Environmental 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 Symphony Environmental with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and Catalyst Media.
Diversification Opportunities for Symphony Environmental and Catalyst Media
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Symphony and Catalyst is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol 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 Symphony Environmental 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 Symphony Environmental Technologies 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 Symphony Environmental i.e., Symphony Environmental and Catalyst Media go up and down completely randomly.
Pair Corralation between Symphony Environmental and Catalyst Media
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to under-perform the Catalyst Media. In addition to that, Symphony Environmental is 3.03 times more volatile than Catalyst Media Group. It trades about -0.02 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about 0.0 per unit of volatility. If you would invest 9,680 in Catalyst Media Group on September 13, 2024 and sell it today you would lose (930.00) from holding Catalyst Media Group or give up 9.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. Catalyst Media Group
Performance |
| Timeline |
| Symphony Environmental |
| Catalyst Media Group |
Symphony Environmental and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and Catalyst Media
The main advantage of trading using opposite Symphony Environmental and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental 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.| Symphony Environmental vs. Atalaya Mining | Symphony Environmental vs. Central Asia Metals | Symphony Environmental vs. Metals Exploration Plc | Symphony Environmental vs. SANTANDER UK 10 |
| Catalyst Media vs. Zanaga Iron Ore | Catalyst Media vs. Alior Bank SA | Catalyst Media vs. Symphony Environmental Technologies | Catalyst Media vs. Ironveld 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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