Correlation Between ACG Metals and Catalyst Metals

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

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

Diversification Opportunities for ACG Metals and Catalyst Metals

-0.27

Correlation Coefficient

ACG Metals  Catalyst Metals

Very good diversification

The 3 months correlation between ACG and Catalyst is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and Catalyst Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Metals and ACG 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 ACG Metals Limited are associated (or correlated) with Catalyst Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Metals has no effect on the direction of ACG Metals i.e., ACG Metals and Catalyst Metals go up and down completely randomly.

Pair Corralation between ACG Metals and Catalyst Metals

Assuming the 90 days horizon ACG Metals Limited is expected to under-perform the Catalyst Metals. But the pink sheet apears to be less risky and, when comparing its historical volatility, ACG Metals Limited is 1.05 times less risky than Catalyst Metals. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Catalyst Metals Limited is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  495.00  in Catalyst Metals Limited on September 5, 2025 and sell it today you would lose (59.00) from holding Catalyst Metals Limited or give up 11.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ACG Metals Limited  vs.  Catalyst Metals Limited

ACG Metals Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days ACG Metals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Catalyst Metals

Risk-Adjusted Performance

Weakest

Over the last 90 days Catalyst Metals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with ACG Metals and Catalyst Metals

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

The idea behind ACG Metals Limited and Catalyst Metals Limited 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.