Correlation Between Catena Media and Embracer Group
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By analyzing existing cross correlation between Catena Media plc and Embracer Group AB, you can compare the effects of market volatilities on Catena Media and Embracer Group 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 Catena Media with a short position of Embracer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and Embracer Group.
Diversification Opportunities for Catena Media and Embracer Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catena and Embracer is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media plc and Embracer Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embracer Group AB and Catena 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 Catena Media plc are associated (or correlated) with Embracer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embracer Group AB has no effect on the direction of Catena Media i.e., Catena Media and Embracer Group go up and down completely randomly.
Pair Corralation between Catena Media and Embracer Group
Assuming the 90 days trading horizon Catena Media plc is expected to generate 1.63 times more return on investment than Embracer Group. However, Catena Media is 1.63 times more volatile than Embracer Group AB. It trades about 0.08 of its potential returns per unit of risk. Embracer Group AB is currently generating about -0.1 per unit of risk. If you would invest 178.00 in Catena Media plc on June 9, 2025 and sell it today you would earn a total of 37.00 from holding Catena Media plc or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena Media plc vs. Embracer Group AB
Performance |
| Timeline |
| Catena Media plc |
| Embracer Group AB |
Catena Media and Embracer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena Media and Embracer Group
The main advantage of trading using opposite Catena Media and Embracer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, Embracer Group 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 Embracer Group will offset losses from the drop in Embracer Group's long position.| Catena Media vs. Genius Sports | Catena Media vs. Groupon | Catena Media vs. Prosus NV | Catena Media vs. Betsson AB |
| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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