Correlation Between Catalyst Exceed and Simt Small
Can any of the company-specific risk be diversified away by investing in both Catalyst Exceed and Simt Small 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 Simt Small 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 Simt Small Cap, you can compare the effects of market volatilities on Catalyst Exceed and Simt Small 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 Simt Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Exceed and Simt Small.
Diversification Opportunities for Catalyst Exceed and Simt Small
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catalyst and Simt is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and Simt Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Small Cap 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 Simt Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Small Cap has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and Simt Small go up and down completely randomly.
Pair Corralation between Catalyst Exceed and Simt Small
Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate 0.64 times more return on investment than Simt Small. However, Catalyst Exceed Defined is 1.57 times less risky than Simt Small. It trades about 0.29 of its potential returns per unit of risk. Simt Small Cap is currently generating about 0.18 per unit of risk. If you would invest 1,119 in Catalyst Exceed Defined on April 26, 2025 and sell it today you would earn a total of 161.00 from holding Catalyst Exceed Defined or generate 14.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Catalyst Exceed Defined vs. Simt Small Cap
Performance |
Timeline |
Catalyst Exceed Defined |
Simt Small Cap |
Catalyst Exceed and Simt Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalyst Exceed and Simt Small
The main advantage of trading using opposite Catalyst Exceed and Simt Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Exceed position performs unexpectedly, Simt Small 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 Simt Small will offset losses from the drop in Simt Small's long position.Catalyst Exceed vs. Calvert Bond Portfolio | Catalyst Exceed vs. Bbh Intermediate Municipal | Catalyst Exceed vs. Gmo High Yield | Catalyst Exceed vs. The National Tax Free |
Simt Small vs. Qs Growth Fund | Simt Small vs. Alternative Asset Allocation | Simt Small vs. Tax Managed Large Cap | Simt Small vs. Tfa Tactical 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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