Correlation Between Catalyst Insider and Catalystaspect Enhanced
Can any of the company-specific risk be diversified away by investing in both Catalyst Insider 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 Insider and Catalystaspect Enhanced 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 Catalystaspect Enhanced Multi Asset, you can compare the effects of market volatilities on Catalyst Insider 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 Insider with a short position of Catalystaspect Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Insider and Catalystaspect Enhanced.
Diversification Opportunities for Catalyst Insider and Catalystaspect Enhanced
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst and Catalystaspect is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Insider Buying 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 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 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 Insider i.e., Catalyst Insider and Catalystaspect Enhanced go up and down completely randomly.
Pair Corralation between Catalyst Insider and Catalystaspect Enhanced
Assuming the 90 days horizon Catalyst Insider Buying is expected to generate 1.61 times more return on investment than Catalystaspect Enhanced. However, Catalyst Insider is 1.61 times more volatile than Catalystaspect Enhanced Multi Asset. It trades about 0.29 of its potential returns per unit of risk. Catalystaspect Enhanced Multi Asset is currently generating about 0.25 per unit of risk. If you would invest 1,891 in Catalyst Insider Buying on April 28, 2025 and sell it today you would earn a total of 358.00 from holding Catalyst Insider Buying or generate 18.93% 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. Catalystaspect Enhanced Multi
Performance |
Timeline |
Catalyst Insider Buying |
Catalystaspect Enhanced |
Catalyst Insider and Catalystaspect Enhanced Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalyst Insider and Catalystaspect Enhanced
The main advantage of trading using opposite Catalyst Insider and Catalystaspect Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Insider 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.Catalyst Insider vs. Baron Select Funds | Catalyst Insider vs. Victory Rs Science | Catalyst Insider vs. Science Technology Fund | Catalyst Insider vs. Mfs Technology 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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