Correlation Between Growth Fund and Catalyst Exceed
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Catalyst Exceed 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 Growth Fund and Catalyst Exceed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Catalyst Exceed Defined, you can compare the effects of market volatilities on Growth Fund and Catalyst Exceed 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 Growth Fund with a short position of Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Catalyst Exceed.
Diversification Opportunities for Growth Fund and Catalyst Exceed
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GROWTH and Catalyst is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Catalyst Exceed Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Exceed Defined and Growth Fund 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 Growth Fund Of are associated (or correlated) with Catalyst Exceed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Exceed Defined has no effect on the direction of Growth Fund i.e., Growth Fund and Catalyst Exceed go up and down completely randomly.
Pair Corralation between Growth Fund and Catalyst Exceed
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.22 times more return on investment than Catalyst Exceed. However, Growth Fund is 1.22 times more volatile than Catalyst Exceed Defined. It trades about 0.1 of its potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.07 per unit of risk. If you would invest 4,955 in Growth Fund Of on July 12, 2025 and sell it today you would earn a total of 3,665 from holding Growth Fund Of or generate 73.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Growth Fund Of vs. Catalyst Exceed Defined
Performance |
Timeline |
Growth Fund |
Catalyst Exceed Defined |
Growth Fund and Catalyst Exceed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Growth Fund and Catalyst Exceed
The main advantage of trading using opposite Growth Fund and Catalyst Exceed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Catalyst Exceed 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 Exceed will offset losses from the drop in Catalyst Exceed's long position.Growth Fund vs. Multisector Bond Sma | Growth Fund vs. Municipal Bond Fund | Growth Fund vs. Ambrus Core Bond | Growth Fund vs. Gmo High Yield |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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