Correlation Between Panther Metals and Catalyst Media

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

By analyzing existing cross correlation between Panther Metals PLC and Catalyst Media Group, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Catalyst Media.

Diversification Opportunities for Panther Metals and Catalyst Media

0.85

Correlation Coefficient

Panther Metals  Catalyst Media

Very poor diversification

The 3 months correlation between Panther and Catalyst is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC 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 Panther Metals 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 Panther Metals PLC 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 Panther Metals i.e., Panther Metals and Catalyst Media go up and down completely randomly.

Pair Corralation between Panther Metals and Catalyst Media

Assuming the 90 days trading horizon Panther Metals PLC is expected to under-perform the Catalyst Media. In addition to that, Panther Metals is 2.03 times more volatile than Catalyst Media Group. It trades about -0.24 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about -0.16 per unit of volatility. If you would invest  8,550  in Catalyst Media Group on November 29, 2024 and sell it today you would lose (2,050) from holding Catalyst Media Group or give up 23.98% of portfolio value over 90 days.

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

Panther Metals PLC  vs.  Catalyst Media Group

Panther Metals PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Panther Metals 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 March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Catalyst Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Catalyst Media Group 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Panther Metals and Catalyst Media

The main advantage of trading using opposite Panther Metals and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.

The idea behind Panther Metals PLC and Catalyst Media Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..