Correlation Between Catena Media and Secure Property

Can any of the company-specific risk be diversified away by investing in both Catena Media and Secure Property 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 Catena Media and Secure Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Catena Media PLC and Secure Property Development, you can compare the effects of market volatilities on Catena Media and Secure Property 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 Secure Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and Secure Property.

Diversification Opportunities for Catena Media and Secure Property

0.29

Correlation Coefficient

Catena Media  Secure Property

Modest diversification

The 3 months correlation between Catena and Secure is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media PLC and Secure Property Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Property Deve 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 Secure Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Property Deve has no effect on the direction of Catena Media i.e., Catena Media and Secure Property go up and down completely randomly.

Pair Corralation between Catena Media and Secure Property

Assuming the 90 days trading horizon Catena Media PLC is expected to generate 1.53 times more return on investment than Secure Property. However, Catena Media is 1.53 times more volatile than Secure Property Development. It trades about -0.04 of its potential returns per unit of risk. Secure Property Development is currently generating about -0.09 per unit of risk. If you would invest  439.00  in Catena Media PLC on December 2, 2024 and sell it today you would lose (101.00) from holding Catena Media PLC or give up 23.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Catena Media PLC  vs.  Secure Property Development

Catena Media PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Catena Media PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Secure Property Deve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Secure Property Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Catena Media and Secure Property

The main advantage of trading using opposite Catena Media and Secure Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, Secure Property 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 Secure Property will offset losses from the drop in Secure Property's long position.

The idea behind Catena Media PLC and Secure Property Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.