Correlation Between Catalyst/warrington and Catalystaspect Enhanced

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

By analyzing existing cross correlation between Catalystwarrington Strategic Program and Catalystaspect Enhanced Multi Asset, you can compare the effects of market volatilities on Catalyst/warrington and Catalystaspect Enhanced 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/warrington with a short position of Catalystaspect Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/warrington and Catalystaspect Enhanced.

Diversification Opportunities for Catalyst/warrington and Catalystaspect Enhanced

-0.94

Correlation Coefficient

Catalyst/warrington  Catalystaspect Enhanced

Pay attention - limited upside

The 3 months correlation between Catalyst/warrington and Catalystaspect is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Catalystwarrington Strategic P and Catalystaspect Enhanced Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystaspect Enhanced and Catalyst/warrington 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 Catalystwarrington Strategic Program are associated (or correlated) with Catalystaspect Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystaspect Enhanced has no effect on the direction of Catalyst/warrington i.e., Catalyst/warrington and Catalystaspect Enhanced go up and down completely randomly.

Pair Corralation between Catalyst/warrington and Catalystaspect Enhanced

Assuming the 90 days horizon Catalystwarrington Strategic Program is expected to under-perform the Catalystaspect Enhanced. But the mutual fund apears to be less risky and, when comparing its historical volatility, Catalystwarrington Strategic Program is 11.84 times less risky than Catalystaspect Enhanced. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Catalystaspect Enhanced Multi Asset is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  848.00  in Catalystaspect Enhanced Multi Asset on May 1, 2025 and sell it today you would earn a total of  74.00  from holding Catalystaspect Enhanced Multi Asset or generate 8.73% return on investment over 90 days.

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

Catalystwarrington Strategic P  vs.  Catalystaspect Enhanced Multi

Catalyst/warrington

Risk-Adjusted Performance

Very Weak

Over the last 90 days Catalystwarrington Strategic Program has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Catalyst/warrington is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Catalystaspect Enhanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystaspect Enhanced Multi Asset are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Catalystaspect Enhanced may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Catalyst/warrington and Catalystaspect Enhanced

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

The idea behind Catalystwarrington Strategic Program and Catalystaspect Enhanced Multi Asset 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.