Correlation Between White Pearl and Catena Media
Can any of the company-specific risk be diversified away by investing in both White Pearl and Catena 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 White Pearl and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between White Pearl Technology and Catena Media plc, you can compare the effects of market volatilities on White Pearl 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 White Pearl with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Pearl and Catena Media.
Diversification Opportunities for White Pearl and Catena Media
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between White and Catena is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding White Pearl Technology 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 White Pearl 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 White Pearl Technology 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 White Pearl i.e., White Pearl and Catena Media go up and down completely randomly.
Pair Corralation between White Pearl and Catena Media
Assuming the 90 days trading horizon White Pearl Technology is expected to generate 1.38 times more return on investment than Catena Media. However, White Pearl is 1.38 times more volatile than Catena Media plc. It trades about 0.35 of its potential returns per unit of risk. Catena Media plc is currently generating about -0.17 per unit of risk. If you would invest 363.00 in White Pearl Technology on September 1, 2024 and sell it today you would earn a total of 233.00 from holding White Pearl Technology or generate 64.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
White Pearl Technology vs. Catena Media plc
Performance |
| Timeline |
| White Pearl Technology |
| Catena Media plc |
White Pearl and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Pearl and Catena Media
The main advantage of trading using opposite White Pearl and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Pearl 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.| White Pearl vs. OptiCept Technologies AB | White Pearl vs. Maven Wireless Sweden | White Pearl vs. Catena Media plc | White Pearl vs. Vitec Software Group |
| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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