Correlation Between Catalyst Exceed and Cibc Atlas

Can any of the company-specific risk be diversified away by investing in both Catalyst Exceed and Cibc Atlas 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 Cibc Atlas 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 Cibc Atlas International, you can compare the effects of market volatilities on Catalyst Exceed and Cibc Atlas 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 Cibc Atlas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Exceed and Cibc Atlas.

Diversification Opportunities for Catalyst Exceed and Cibc Atlas

0.93

Correlation Coefficient

Catalyst Exceed  Cibc Atlas

Almost no diversification

The 3 months correlation between Catalyst and Cibc is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and Cibc Atlas International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibc Atlas International 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 Cibc Atlas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibc Atlas International has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and Cibc Atlas go up and down completely randomly.

Pair Corralation between Catalyst Exceed and Cibc Atlas

Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate 1.05 times more return on investment than Cibc Atlas. However, Catalyst Exceed is 1.05 times more volatile than Cibc Atlas International. It trades about 0.29 of its potential returns per unit of risk. Cibc Atlas International is currently generating about 0.21 per unit of risk. If you would invest  1,119  in Catalyst Exceed Defined on April 27, 2025 and sell it today you would earn a total of  164.00  from holding Catalyst Exceed Defined or generate 14.66% return on investment over 90 days.

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

Catalyst Exceed Defined  vs.  Cibc Atlas International

Catalyst Exceed Defined

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Exceed Defined are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Catalyst Exceed showed solid returns over the last few months and may actually be approaching a breakup point.

Cibc Atlas International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas International are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Cibc Atlas may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Catalyst Exceed and Cibc Atlas

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

The idea behind Catalyst Exceed Defined and Cibc Atlas International 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.