Correlation Between Catalyst Metals and Altisource Asset

Can any of the company-specific risk be diversified away by investing in both Catalyst Metals and Altisource Asset 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 Metals and Altisource Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Catalyst Metals Limited and Altisource Asset Management, you can compare the effects of market volatilities on Catalyst Metals and Altisource Asset 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 Metals with a short position of Altisource Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Metals and Altisource Asset.

Diversification Opportunities for Catalyst Metals and Altisource Asset

-0.28

Correlation Coefficient

Catalyst Metals  Altisource Asset

Very good diversification

The 3 months correlation between Catalyst and Altisource is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Metals Limited and Altisource Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altisource Asset Man and Catalyst Metals 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 Metals Limited are associated (or correlated) with Altisource Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altisource Asset Man has no effect on the direction of Catalyst Metals i.e., Catalyst Metals and Altisource Asset go up and down completely randomly.

Pair Corralation between Catalyst Metals and Altisource Asset

Assuming the 90 days horizon Catalyst Metals Limited is expected to under-perform the Altisource Asset. In addition to that, Catalyst Metals is 14.3 times more volatile than Altisource Asset Management. It trades about -0.05 of its total potential returns per unit of risk. Altisource Asset Management is currently generating about 0.0 per unit of volatility. If you would invest  370,000  in Altisource Asset Management on September 12, 2025 and sell it today you would earn a total of  0.00  from holding Altisource Asset Management or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Catalyst Metals Limited  vs.  Altisource Asset Management

Catalyst Metals

Risk-Adjusted Performance

Weakest

Over the last 90 days Catalyst Metals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's primary indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Altisource Asset Man

Risk-Adjusted Performance

Weakest

Over the last 90 days Altisource Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Altisource Asset is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Catalyst Metals and Altisource Asset

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

The idea behind Catalyst Metals Limited and Altisource Asset Management 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.