Correlation Between Qs Growth and Catalystmap Global

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Can any of the company-specific risk be diversified away by investing in both Qs Growth 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 Qs Growth and Catalystmap Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qs Growth Fund and Catalystmap Global Equity, you can compare the effects of market volatilities on Qs Growth 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 Qs Growth with a short position of Catalystmap Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Growth and Catalystmap Global.

Diversification Opportunities for Qs Growth and Catalystmap Global

0.96
  Correlation Coefficient

Almost no diversification

The 3 months correlation between LANIX and Catalystmap is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Qs Growth Fund and Catalystmap Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global Equity and Qs Growth 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 Qs Growth Fund 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 Equity has no effect on the direction of Qs Growth i.e., Qs Growth and Catalystmap Global go up and down completely randomly.

Pair Corralation between Qs Growth and Catalystmap Global

Assuming the 90 days horizon Qs Growth Fund is expected to generate 1.21 times more return on investment than Catalystmap Global. However, Qs Growth is 1.21 times more volatile than Catalystmap Global Equity. It trades about 0.18 of its potential returns per unit of risk. Catalystmap Global Equity is currently generating about 0.2 per unit of risk. If you would invest  1,689  in Qs Growth Fund on May 17, 2025 and sell it today you would earn a total of  111.00  from holding Qs Growth Fund or generate 6.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Qs Growth Fund  vs.  Catalystmap Global Equity

 Performance 
       Timeline  
Qs Growth Fund 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Qs Growth Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Qs Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.
Catalystmap Global Equity 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Equity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Catalystmap Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Qs Growth and Catalystmap Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Qs Growth and Catalystmap Global

The main advantage of trading using opposite Qs Growth and Catalystmap Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Growth 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.
The idea behind Qs Growth Fund and Catalystmap Global Equity 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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