Correlation Between Catalyst Media and MTI Wireless
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and MTI Wireless 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 Catalyst Media and MTI Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Media Group and MTI Wireless Edge, you can compare the effects of market volatilities on Catalyst Media and MTI Wireless 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 Catalyst Media with a short position of MTI Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and MTI Wireless.
Diversification Opportunities for Catalyst Media and MTI Wireless
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catalyst and MTI is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and MTI Wireless Edge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI Wireless Edge and Catalyst 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 Catalyst Media Group are associated (or correlated) with MTI Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI Wireless Edge has no effect on the direction of Catalyst Media i.e., Catalyst Media and MTI Wireless go up and down completely randomly.
Pair Corralation between Catalyst Media and MTI Wireless
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 0.49 times more return on investment than MTI Wireless. However, Catalyst Media Group is 2.05 times less risky than MTI Wireless. It trades about -0.2 of its potential returns per unit of risk. MTI Wireless Edge is currently generating about -0.12 per unit of risk. If you would invest 5,750 in Catalyst Media Group on July 20, 2025 and sell it today you would lose (1,000.00) from holding Catalyst Media Group or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. MTI Wireless Edge
Performance |
| Timeline |
| Catalyst Media Group |
| MTI Wireless Edge |
Catalyst Media and MTI Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and MTI Wireless
The main advantage of trading using opposite Catalyst Media and MTI Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, MTI Wireless 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 MTI Wireless will offset losses from the drop in MTI Wireless' long position.| Catalyst Media vs. Sovereign Metals | Catalyst Media vs. Europa Metals | Catalyst Media vs. Jacquet Metal Service | Catalyst Media vs. Wheaton Precious Metals |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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