Correlation Between Great West and Catalyst Hedged

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

By analyzing existing cross correlation between Great West Real Estate and Catalyst Hedged Modity, you can compare the effects of market volatilities on Great West and Catalyst Hedged 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 Great West with a short position of Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Catalyst Hedged.

Diversification Opportunities for Great West and Catalyst Hedged

0.06

Correlation Coefficient

Great West  Catalyst Hedged

Significant diversification

The 3 months correlation between Great and Catalyst is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Great West Real Estate and Catalyst Hedged Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Hedged Modity and Great West 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 Great West Real Estate are associated (or correlated) with Catalyst Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Hedged Modity has no effect on the direction of Great West i.e., Great West and Catalyst Hedged go up and down completely randomly.

Pair Corralation between Great West and Catalyst Hedged

If you would invest  1,239  in Great West Real Estate on September 16, 2025 and sell it today you would earn a total of  0.00  from holding Great West Real Estate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Great West Real Estate  vs.  Catalyst Hedged Modity

Great West Real

Risk-Adjusted Performance

Weakest

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

Catalyst Hedged Modity

Risk-Adjusted Performance

Weakest

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

Pair Trading with Great West and Catalyst Hedged

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

The idea behind Great West Real Estate and Catalyst Hedged Modity 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.