Correlation Between Catena Media and Everyman Media

Can any of the company-specific risk be diversified away by investing in both Catena Media and Everyman 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 Catena Media and Everyman Media 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 Everyman Media Group, you can compare the effects of market volatilities on Catena Media and Everyman 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 Catena Media with a short position of Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and Everyman Media.

Diversification Opportunities for Catena Media and Everyman Media

-0.41

Correlation Coefficient

Catena Media  Everyman Media

Very good diversification

The 3 months correlation between Catena and Everyman is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media PLC and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Catena Media i.e., Catena Media and Everyman Media go up and down completely randomly.

Pair Corralation between Catena Media and Everyman Media

Assuming the 90 days trading horizon Catena Media PLC is expected to under-perform the Everyman Media. In addition to that, Catena Media is 1.46 times more volatile than Everyman Media Group. It trades about -0.04 of its total potential returns per unit of risk. Everyman Media Group is currently generating about 0.05 per unit of volatility. If you would invest  3,750  in Everyman Media Group on April 6, 2025 and sell it today you would earn a total of  200.00  from holding Everyman Media Group or generate 5.33% return on investment over 90 days.

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

Catena Media PLC  vs.  Everyman Media Group

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 latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Everyman Media Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Everyman Media Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Everyman Media may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Catena Media and Everyman Media

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

The idea behind Catena Media PLC and Everyman 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.