Correlation Between TR Property and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both TR Property 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 TR Property and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TR Property Investment and Catalyst Media Group, you can compare the effects of market volatilities on TR Property 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 TR Property with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TR Property and Catalyst Media.
Diversification Opportunities for TR Property and Catalyst Media
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRY and Catalyst is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding TR Property Investment 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 TR Property 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 TR Property Investment 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 TR Property i.e., TR Property and Catalyst Media go up and down completely randomly.
Pair Corralation between TR Property and Catalyst Media
Assuming the 90 days trading horizon TR Property Investment is expected to generate 0.41 times more return on investment than Catalyst Media. However, TR Property Investment is 2.41 times less risky than Catalyst Media. It trades about -0.14 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.12 per unit of risk. If you would invest 32,900 in TR Property Investment on August 31, 2024 and sell it today you would lose (1,200) from holding TR Property Investment or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TR Property Investment vs. Catalyst Media Group
Performance |
| Timeline |
| TR Property Investment |
| Catalyst Media Group |
TR Property and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TR Property and Catalyst Media
The main advantage of trading using opposite TR Property and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TR Property 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.| TR Property vs. Eastman Chemical Co | TR Property vs. American Tower REIT | TR Property vs. Ameriprise Financial | TR Property vs. Ibstock PLC |
| Catalyst Media vs. Aurora Investment Trust | Catalyst Media vs. Panther Metals PLC | Catalyst Media vs. Taylor Maritime Investments | Catalyst Media vs. JB Hunt Transport |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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