Correlation Between Catalyst Exceed and Columbia Pacificasia

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

Diversification Opportunities for Catalyst Exceed and Columbia Pacificasia

0.91

Correlation Coefficient

Catalyst Exceed  Columbia Pacificasia

Almost no diversification

The 3 months correlation between Catalyst and Columbia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and Columbia Pacificasia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Pacificasia 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 Columbia Pacificasia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Pacificasia has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and Columbia Pacificasia go up and down completely randomly.

Pair Corralation between Catalyst Exceed and Columbia Pacificasia

Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate 1.23 times more return on investment than Columbia Pacificasia. However, Catalyst Exceed is 1.23 times more volatile than Columbia Pacificasia Fund. It trades about 0.24 of its potential returns per unit of risk. Columbia Pacificasia Fund is currently generating about 0.23 per unit of risk. If you would invest  1,148  in Catalyst Exceed Defined on May 2, 2025 and sell it today you would earn a total of  136.00  from holding Catalyst Exceed Defined or generate 11.85% 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.  Columbia Pacificasia Fund

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 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Catalyst Exceed may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Columbia Pacificasia

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Pacificasia Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Columbia Pacificasia may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Catalyst Exceed and Columbia Pacificasia

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

The idea behind Catalyst Exceed Defined and Columbia Pacificasia Fund 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.