Correlation Between Catalyst/lyons Tactical and Catalyst/smh Total
Can any of the company-specific risk be diversified away by investing in both Catalyst/lyons Tactical and Catalyst/smh Total 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/lyons Tactical and Catalyst/smh Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystlyons Tactical Allocation and Catalystsmh Total Return, you can compare the effects of market volatilities on Catalyst/lyons Tactical and Catalyst/smh Total 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/lyons Tactical with a short position of Catalyst/smh Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/lyons Tactical and Catalyst/smh Total.
Diversification Opportunities for Catalyst/lyons Tactical and Catalyst/smh Total
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Catalyst/lyons and Catalyst/smh is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Catalystlyons Tactical Allocat and Catalystsmh Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh Total Return and Catalyst/lyons Tactical 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 Catalystlyons Tactical Allocation are associated (or correlated) with Catalyst/smh Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh Total Return has no effect on the direction of Catalyst/lyons Tactical i.e., Catalyst/lyons Tactical and Catalyst/smh Total go up and down completely randomly.
Pair Corralation between Catalyst/lyons Tactical and Catalyst/smh Total
Assuming the 90 days horizon Catalyst/lyons Tactical is expected to generate 1.1 times less return on investment than Catalyst/smh Total. In addition to that, Catalyst/lyons Tactical is 1.08 times more volatile than Catalystsmh Total Return. It trades about 0.21 of its total potential returns per unit of risk. Catalystsmh Total Return is currently generating about 0.25 per unit of volatility. If you would invest 435.00 in Catalystsmh Total Return on April 25, 2025 and sell it today you would earn a total of 50.00 from holding Catalystsmh Total Return or generate 11.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Catalystlyons Tactical Allocat vs. Catalystsmh Total Return
Performance |
Timeline |
Catalyst/lyons Tactical |
Catalystsmh Total Return |
Catalyst/lyons Tactical and Catalyst/smh Total Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalyst/lyons Tactical and Catalyst/smh Total
The main advantage of trading using opposite Catalyst/lyons Tactical and Catalyst/smh Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/lyons Tactical position performs unexpectedly, Catalyst/smh Total 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/smh Total will offset losses from the drop in Catalyst/smh Total's long position.Catalyst/lyons Tactical vs. Guidemark Large Cap | Catalyst/lyons Tactical vs. Dana Large Cap | Catalyst/lyons Tactical vs. Aqr Large Cap | Catalyst/lyons Tactical vs. Qs Large Cap |
Catalyst/smh Total vs. Catalystsmh High Income | Catalyst/smh Total vs. Catalystsmh High Income | Catalyst/smh Total vs. Catalystsmh High Income | Catalyst/smh Total vs. Catalystsmh Total Return |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |