Correlation Between Vietnam Enterprise and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Vietnam Enterprise 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 Vietnam Enterprise and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Enterprise Investments and Catalyst Media Group, you can compare the effects of market volatilities on Vietnam Enterprise 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 Vietnam Enterprise with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Enterprise and Catalyst Media.
Diversification Opportunities for Vietnam Enterprise and Catalyst Media
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vietnam and Catalyst is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Enterprise Investments 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 Vietnam Enterprise 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 Vietnam Enterprise Investments 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 Vietnam Enterprise i.e., Vietnam Enterprise and Catalyst Media go up and down completely randomly.
Pair Corralation between Vietnam Enterprise and Catalyst Media
Assuming the 90 days trading horizon Vietnam Enterprise Investments is expected to generate 0.96 times more return on investment than Catalyst Media. However, Vietnam Enterprise Investments is 1.04 times less risky than Catalyst Media. It trades about 0.0 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.04 per unit of risk. If you would invest 62,100 in Vietnam Enterprise Investments on October 23, 2024 and sell it today you would lose (2,800) from holding Vietnam Enterprise Investments or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Vietnam Enterprise Investments vs. Catalyst Media Group
Performance |
| Timeline |
| Vietnam Enterprise |
| Catalyst Media Group |
Vietnam Enterprise and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Enterprise and Catalyst Media
The main advantage of trading using opposite Vietnam Enterprise and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Enterprise 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.| Vietnam Enterprise vs. Catalyst Media Group | Vietnam Enterprise vs. CATLIN GROUP | Vietnam Enterprise vs. Tamburi Investment Partners | Vietnam Enterprise vs. Magnora ASA |
| Catalyst Media vs. Veolia Environnement VE | Catalyst Media vs. Schroders Investment Trusts | Catalyst Media vs. EJF Investments | Catalyst Media vs. Vietnam Enterprise Investments |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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