Correlation Between Terranet and Catena Media
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By analyzing existing cross correlation between Terranet AB and Catena Media plc, you can compare the effects of market volatilities on Terranet 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 Terranet with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terranet and Catena Media.
Diversification Opportunities for Terranet and Catena Media
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Terranet and Catena is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Terranet AB 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 Terranet 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 Terranet AB 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 Terranet i.e., Terranet and Catena Media go up and down completely randomly.
Pair Corralation between Terranet and Catena Media
Assuming the 90 days trading horizon Terranet AB is expected to generate 1.57 times more return on investment than Catena Media. However, Terranet is 1.57 times more volatile than Catena Media plc. It trades about 0.0 of its potential returns per unit of risk. Catena Media plc is currently generating about -0.11 per unit of risk. If you would invest 16.00 in Terranet AB on August 31, 2024 and sell it today you would lose (1.00) from holding Terranet AB or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Terranet AB vs. Catena Media plc
Performance |
| Timeline |
| Terranet AB |
| Catena Media plc |
Terranet and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terranet and Catena Media
The main advantage of trading using opposite Terranet and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terranet 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.| Terranet vs. Catena Media plc | Terranet vs. Kambi Group PLC | Terranet vs. Betsson AB | Terranet vs. Invisio Communications AB |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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