Correlation Between Catalyst/millburn and Catalystsmh Total

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

By analyzing existing cross correlation between Catalystmillburn Hedge Strategy and Catalystsmh Total Return, you can compare the effects of market volatilities on Catalyst/millburn and Catalystsmh Total 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/millburn with a short position of Catalystsmh Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/millburn and Catalystsmh Total.

Diversification Opportunities for Catalyst/millburn and Catalystsmh Total

0.9

Correlation Coefficient

Catalyst/millburn  Catalystsmh Total

Almost no diversification

The 3 months correlation between Catalyst/millburn and Catalystsmh is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmillburn Hedge Strateg and Catalystsmh Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh Total Return and Catalyst/millburn 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 Catalystmillburn Hedge Strategy are associated (or correlated) with Catalystsmh Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh Total Return has no effect on the direction of Catalyst/millburn i.e., Catalyst/millburn and Catalystsmh Total go up and down completely randomly.

Pair Corralation between Catalyst/millburn and Catalystsmh Total

Assuming the 90 days horizon Catalyst/millburn is expected to generate 1.25 times less return on investment than Catalystsmh Total. But when comparing it to its historical volatility, Catalystmillburn Hedge Strategy is 1.29 times less risky than Catalystsmh Total. It trades about 0.28 of its potential returns per unit of risk. Catalystsmh Total Return is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  428.00  in Catalystsmh Total Return on April 23, 2025 and sell it today you would earn a total of  55.00  from holding Catalystsmh Total Return or generate 12.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Catalystmillburn Hedge Strateg  vs.  Catalystsmh Total Return

Catalystmillburn Hedge

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmillburn Hedge Strategy are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalyst/millburn may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Catalystsmh Total Return

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystsmh Total Return are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Catalystsmh Total may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Catalyst/millburn and Catalystsmh Total

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

The idea behind Catalystmillburn Hedge Strategy and Catalystsmh Total Return 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..