Correlation Between Catalyst Insider and Multimedia Portfolio

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

By analyzing existing cross correlation between Catalyst Insider Income and Multimedia Portfolio Multimedia, you can compare the effects of market volatilities on Catalyst Insider and Multimedia Portfolio 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 Insider with a short position of Multimedia Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Insider and Multimedia Portfolio.

Diversification Opportunities for Catalyst Insider and Multimedia Portfolio

0.0

Correlation Coefficient

Catalyst Insider  Multimedia Portfolio

Pay attention - limited upside

The 3 months correlation between Catalyst and Multimedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Insider Income and Multimedia Portfolio Multimedi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimedia Portfolio and Catalyst Insider 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 Insider Income are associated (or correlated) with Multimedia Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimedia Portfolio has no effect on the direction of Catalyst Insider i.e., Catalyst Insider and Multimedia Portfolio go up and down completely randomly.

Pair Corralation between Catalyst Insider and Multimedia Portfolio

If you would invest (100.00) in Catalyst Insider Income on August 23, 2025 and sell it today you would earn a total of  100.00  from holding Catalyst Insider Income or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Catalyst Insider Income  vs.  Multimedia Portfolio Multimedi

Catalyst Insider Income

Risk-Adjusted Performance

Solid

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

Multimedia Portfolio

Risk-Adjusted Performance

Soft

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

Pair Trading with Catalyst Insider and Multimedia Portfolio

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

The idea behind Catalyst Insider Income and Multimedia Portfolio Multimedia 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..