Correlation Between Catalyst Insider and Catalystmap Global
Can any of the company-specific risk be diversified away by investing in both Catalyst Insider and Catalystmap Global 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 Catalystmap Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Insider Buying and Catalystmap Global Balanced, you can compare the effects of market volatilities on Catalyst Insider and Catalystmap Global 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 Catalystmap Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Insider and Catalystmap Global.
Diversification Opportunities for Catalyst Insider and Catalystmap Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst and Catalystmap is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Insider Buying and Catalystmap Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global 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 Buying are associated (or correlated) with Catalystmap Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global has no effect on the direction of Catalyst Insider i.e., Catalyst Insider and Catalystmap Global go up and down completely randomly.
Pair Corralation between Catalyst Insider and Catalystmap Global
Assuming the 90 days horizon Catalyst Insider Buying is expected to generate 3.46 times more return on investment than Catalystmap Global. However, Catalyst Insider is 3.46 times more volatile than Catalystmap Global Balanced. It trades about 0.29 of its potential returns per unit of risk. Catalystmap Global Balanced is currently generating about 0.37 per unit of risk. If you would invest 2,017 in Catalyst Insider Buying on April 26, 2025 and sell it today you would earn a total of 377.00 from holding Catalyst Insider Buying or generate 18.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Catalyst Insider Buying vs. Catalystmap Global Balanced
Performance |
Timeline |
Catalyst Insider Buying |
Catalystmap Global |
Catalyst Insider and Catalystmap Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalyst Insider and Catalystmap Global
The main advantage of trading using opposite Catalyst Insider and Catalystmap Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Insider position performs unexpectedly, Catalystmap Global 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 Catalystmap Global will offset losses from the drop in Catalystmap Global's long position.Catalyst Insider vs. First Eagle Gold | Catalyst Insider vs. Great West Goldman Sachs | Catalyst Insider vs. International Investors Gold | Catalyst Insider vs. Gabelli Gold Fund |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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