Correlation Between Catalyst Metals and ACG Metals

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

Diversification Opportunities for Catalyst Metals and ACG Metals

-0.37

Correlation Coefficient

Catalyst Metals  ACG Metals

Very good diversification

The 3 months correlation between Catalyst and ACG is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Metals Limited and ACG Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Metals Limited 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 ACG Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Metals Limited has no effect on the direction of Catalyst Metals i.e., Catalyst Metals and ACG Metals go up and down completely randomly.

Pair Corralation between Catalyst Metals and ACG Metals

Assuming the 90 days horizon Catalyst Metals Limited is expected to under-perform the ACG Metals. In addition to that, Catalyst Metals is 13.56 times more volatile than ACG Metals Limited. It trades about -0.37 of its total potential returns per unit of risk. ACG Metals Limited is currently generating about -0.24 per unit of volatility. If you would invest  1,441  in ACG Metals Limited on September 16, 2025 and sell it today you would lose (13.00) from holding ACG Metals Limited or give up 0.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Catalyst Metals Limited  vs.  ACG Metals Limited

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 weak 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.

ACG Metals Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days ACG Metals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Catalyst Metals and ACG Metals

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

The idea behind Catalyst Metals Limited and ACG Metals Limited 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.