Correlation Between Xeros Technology and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Xeros Technology 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 Xeros Technology and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xeros Technology Group and Catalyst Media Group, you can compare the effects of market volatilities on Xeros Technology 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 Xeros Technology with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xeros Technology and Catalyst Media.
Diversification Opportunities for Xeros Technology and Catalyst Media
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xeros and Catalyst is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xeros Technology Group 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 Xeros Technology 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 Xeros Technology Group 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 Xeros Technology i.e., Xeros Technology and Catalyst Media go up and down completely randomly.
Pair Corralation between Xeros Technology and Catalyst Media
Assuming the 90 days trading horizon Xeros Technology Group is expected to under-perform the Catalyst Media. In addition to that, Xeros Technology is 2.6 times more volatile than Catalyst Media Group. It trades about -0.07 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about -0.04 per unit of volatility. If you would invest 12,221 in Catalyst Media Group on October 18, 2024 and sell it today you would lose (4,221) from holding Catalyst Media Group or give up 34.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Xeros Technology Group vs. Catalyst Media Group
Performance |
| Timeline |
| Xeros Technology |
| Catalyst Media Group |
Xeros Technology and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xeros Technology and Catalyst Media
The main advantage of trading using opposite Xeros Technology and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xeros Technology 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.| Xeros Technology vs. Catalyst Media Group | Xeros Technology vs. Intermediate Capital Group | Xeros Technology vs. Games Workshop Group | Xeros Technology vs. Liberty Media Corp |
| Catalyst Media vs. Atalaya Mining | Catalyst Media vs. Thor Mining PLC | Catalyst Media vs. Jacquet Metal Service | Catalyst Media vs. Blackrock World Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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