Correlation Between Catalyst/lyons Tactical and Qs Growth

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

Diversification Opportunities for Catalyst/lyons Tactical and Qs Growth

0.93

Correlation Coefficient

Catalyst/lyons Tactical  Qs Growth

Almost no diversification

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

Pair Corralation between Catalyst/lyons Tactical and Qs Growth

Assuming the 90 days horizon Catalyst/lyons Tactical is expected to generate 1.31 times less return on investment than Qs Growth. In addition to that, Catalyst/lyons Tactical is 1.16 times more volatile than Qs Growth Fund. It trades about 0.11 of its total potential returns per unit of risk. Qs Growth Fund is currently generating about 0.17 per unit of volatility. If you would invest  1,689  in Qs Growth Fund on May 19, 2025 and sell it today you would earn a total of  110.00  from holding Qs Growth Fund or generate 6.51% return on investment over 90 days.

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

Catalystlyons Tactical Allocat  vs.  Qs Growth Fund

Catalyst/lyons Tactical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystlyons Tactical Allocation are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Catalyst/lyons Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Qs Growth Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Qs Growth Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Qs Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Catalyst/lyons Tactical and Qs Growth

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

The idea behind Catalystlyons Tactical Allocation and Qs Growth 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.