Correlation Between Zinc Media and Catena Media
Can any of the company-specific risk be diversified away by investing in both Zinc Media 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 Zinc Media and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinc Media Group and Catena Media PLC, you can compare the effects of market volatilities on Zinc Media 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 Zinc Media with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinc Media and Catena Media.
Diversification Opportunities for Zinc Media and Catena Media
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zinc and Catena is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zinc Media Group 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 Zinc Media 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 Zinc Media Group 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 Zinc Media i.e., Zinc Media and Catena Media go up and down completely randomly.
Pair Corralation between Zinc Media and Catena Media
If you would invest (100.00) in Catena Media PLC on September 10, 2024 and sell it today you would earn a total of 100.00 from holding Catena Media PLC or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 0.0% |
Values | Daily Returns |
Zinc Media Group vs. Catena Media PLC
Performance |
Timeline |
Zinc Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catena Media PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zinc Media and Catena Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zinc Media and Catena Media
The main advantage of trading using opposite Zinc Media and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinc Media 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.Zinc Media vs. Sunny Optical Technology | Zinc Media vs. DXC Technology Co | Zinc Media vs. TechnipFMC PLC | Zinc Media vs. Allianz Technology Trust |
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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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