Correlation Between Team Internet and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both Team Internet and CATLIN GROUP 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 Team Internet and CATLIN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Team Internet Group and CATLIN GROUP , you can compare the effects of market volatilities on Team Internet and CATLIN GROUP 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 Team Internet with a short position of CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Team Internet and CATLIN GROUP.
Diversification Opportunities for Team Internet and CATLIN GROUP
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Team and CATLIN is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Team Internet Group and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN GROUP and Team Internet 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 Team Internet Group are associated (or correlated) with CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of Team Internet i.e., Team Internet and CATLIN GROUP go up and down completely randomly.
Pair Corralation between Team Internet and CATLIN GROUP
Assuming the 90 days trading horizon Team Internet Group is expected to generate 13.39 times more return on investment than CATLIN GROUP. However, Team Internet is 13.39 times more volatile than CATLIN GROUP . It trades about 0.11 of its potential returns per unit of risk. CATLIN GROUP is currently generating about -0.22 per unit of risk. If you would invest 8,500 in Team Internet Group on September 18, 2024 and sell it today you would earn a total of 530.00 from holding Team Internet Group or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Team Internet Group vs. CATLIN GROUP
Performance |
| Timeline |
| Team Internet Group |
| CATLIN GROUP |
Team Internet and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Team Internet and CATLIN GROUP
The main advantage of trading using opposite Team Internet and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Team Internet position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| Team Internet vs. XLMedia PLC | Team Internet vs. Live Nation Entertainment | Team Internet vs. Infrastrutture Wireless Italiane | Team Internet vs. Adriatic Metals |
| CATLIN GROUP vs. Catalyst Media Group | CATLIN GROUP vs. Tamburi Investment Partners | CATLIN GROUP vs. Magnora ASA | CATLIN GROUP vs. RTW Venture Fund |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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