Correlation Between Catalyst Exceed and Catalyst Dynamic
Can any of the company-specific risk be diversified away by investing in both Catalyst Exceed and Catalyst Dynamic 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 Catalyst Exceed and Catalyst Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Exceed Defined and Catalyst Dynamic Alpha, you can compare the effects of market volatilities on Catalyst Exceed and Catalyst Dynamic 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 Catalyst Exceed with a short position of Catalyst Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Exceed and Catalyst Dynamic.
Diversification Opportunities for Catalyst Exceed and Catalyst Dynamic
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst and Catalyst is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and Catalyst Dynamic Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Dynamic Alpha and Catalyst Exceed 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 Catalyst Exceed Defined are associated (or correlated) with Catalyst Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Dynamic Alpha has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and Catalyst Dynamic go up and down completely randomly.
Pair Corralation between Catalyst Exceed and Catalyst Dynamic
Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate about the same return on investment as Catalyst Dynamic Alpha. But, Catalyst Exceed Defined is 1.05 times less risky than Catalyst Dynamic. It trades about 0.31 of its potential returns per unit of risk. Catalyst Dynamic Alpha is currently generating about 0.3 per unit of risk. If you would invest 1,751 in Catalyst Dynamic Alpha on April 24, 2025 and sell it today you would earn a total of 280.00 from holding Catalyst Dynamic Alpha or generate 15.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.39% |
Values | Daily Returns |
Catalyst Exceed Defined vs. Catalyst Dynamic Alpha
Performance |
Timeline |
Catalyst Exceed Defined |
Catalyst Dynamic Alpha |
Catalyst Exceed and Catalyst Dynamic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalyst Exceed and Catalyst Dynamic
The main advantage of trading using opposite Catalyst Exceed and Catalyst Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Exceed position performs unexpectedly, Catalyst Dynamic 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 Dynamic will offset losses from the drop in Catalyst Dynamic's long position.Catalyst Exceed vs. Pnc Emerging Markets | Catalyst Exceed vs. Doubleline Emerging Markets | Catalyst Exceed vs. Astor Longshort Fund | Catalyst Exceed vs. Qs Growth Fund |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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