Correlation Between Catalyst Exceed and First Investors
Can any of the company-specific risk be diversified away by investing in both Catalyst Exceed and First Investors 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 First Investors 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 First Investors Select, you can compare the effects of market volatilities on Catalyst Exceed and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Exceed and First Investors.
Diversification Opportunities for Catalyst Exceed and First Investors
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst and First is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and First Investors Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Select 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Select has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and First Investors go up and down completely randomly.
Pair Corralation between Catalyst Exceed and First Investors
Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate 0.95 times more return on investment than First Investors. However, Catalyst Exceed Defined is 1.06 times less risky than First Investors. It trades about 0.3 of its potential returns per unit of risk. First Investors Select is currently generating about 0.26 per unit of risk. If you would invest 1,110 in Catalyst Exceed Defined on April 24, 2025 and sell it today you would earn a total of 167.00 from holding Catalyst Exceed Defined or generate 15.05% 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. First Investors Select
Performance |
Timeline |
Catalyst Exceed Defined |
First Investors Select |
Catalyst Exceed and First Investors Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalyst Exceed and First Investors
The main advantage of trading using opposite Catalyst Exceed and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Exceed position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.Catalyst Exceed vs. Multisector Bond Sma | Catalyst Exceed vs. Bbh Intermediate Municipal | Catalyst Exceed vs. Ab Bond Inflation | Catalyst Exceed vs. Leader Short Term Bond |
First Investors vs. Optimum Small Mid Cap | First Investors vs. Optimum Small Mid Cap | First Investors vs. Ivy Apollo Multi Asset | First Investors vs. Optimum Fixed Income |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |