Correlation Between Tatton Asset and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Tatton Asset 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 Tatton Asset and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tatton Asset Management and Catalyst Media Group, you can compare the effects of market volatilities on Tatton Asset 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 Tatton Asset with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tatton Asset and Catalyst Media.
Diversification Opportunities for Tatton Asset and Catalyst Media
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tatton and Catalyst is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tatton Asset Management 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 Tatton Asset 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 Tatton Asset Management 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 Tatton Asset i.e., Tatton Asset and Catalyst Media go up and down completely randomly.
Pair Corralation between Tatton Asset and Catalyst Media
Assuming the 90 days trading horizon Tatton Asset Management is expected to under-perform the Catalyst Media. But the stock apears to be less risky and, when comparing its historical volatility, Tatton Asset Management is 1.89 times less risky than Catalyst Media. The stock trades about -0.17 of its potential returns per unit of risk. The Catalyst Media Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,600 in Catalyst Media Group on October 24, 2024 and sell it today you would lose (100.00) from holding Catalyst Media Group or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tatton Asset Management vs. Catalyst Media Group
Performance |
| Timeline |
| Tatton Asset Management |
| Catalyst Media Group |
Tatton Asset and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tatton Asset and Catalyst Media
The main advantage of trading using opposite Tatton Asset and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tatton Asset 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.| Tatton Asset vs. Catalyst Media Group | Tatton Asset vs. CATLIN GROUP | Tatton Asset vs. Tamburi Investment Partners | Tatton Asset vs. Magnora ASA |
| Catalyst Media vs. Qurate Retail Series | Catalyst Media vs. Spirent Communications plc | Catalyst Media vs. Charter Communications Cl | Catalyst Media vs. Bloomsbury Publishing 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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