Correlation Between Prudential California and Catalyst Intelligent

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

By analyzing existing cross correlation between Prudential California Muni and Catalyst Intelligent Alternative, you can compare the effects of market volatilities on Prudential California and Catalyst Intelligent 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 Prudential California with a short position of Catalyst Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential California and Catalyst Intelligent.

Diversification Opportunities for Prudential California and Catalyst Intelligent

0.85

Correlation Coefficient

Prudential California  Catalyst Intelligent

Very poor diversification

The 3 months correlation between Prudential and Catalyst is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Prudential California Muni and Catalyst Intelligent Alternati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Intelligent and Prudential California 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 Prudential California Muni are associated (or correlated) with Catalyst Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Intelligent has no effect on the direction of Prudential California i.e., Prudential California and Catalyst Intelligent go up and down completely randomly.

Pair Corralation between Prudential California and Catalyst Intelligent

Assuming the 90 days horizon Prudential California is expected to generate 6.11 times less return on investment than Catalyst Intelligent. But when comparing it to its historical volatility, Prudential California Muni is 7.65 times less risky than Catalyst Intelligent. It trades about 0.27 of its potential returns per unit of risk. Catalyst Intelligent Alternative is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  930.00  in Catalyst Intelligent Alternative on May 17, 2025 and sell it today you would earn a total of  97.00  from holding Catalyst Intelligent Alternative or generate 10.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Prudential California Muni  vs.  Catalyst Intelligent Alternati

Prudential California

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential California Muni are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Prudential California is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Catalyst Intelligent

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Intelligent Alternative are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Catalyst Intelligent may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Prudential California and Catalyst Intelligent

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

The idea behind Prudential California Muni and Catalyst Intelligent Alternative 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.