Correlation Between Prudential Government and Catalyst/smh Total

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

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

Diversification Opportunities for Prudential Government and Catalyst/smh Total

0.0

Correlation Coefficient

Prudential Government  Catalyst/smh Total

Pay attention - limited upside

The 3 months correlation between Prudential and Catalyst/smh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Government Money 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 Prudential Government 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 Government Money are associated (or correlated) with Catalyst/smh 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 Prudential Government i.e., Prudential Government and Catalyst/smh Total go up and down completely randomly.

Pair Corralation between Prudential Government and Catalyst/smh Total

If you would invest  463.00  in Catalystsmh Total Return on July 15, 2025 and sell it today you would earn a total of  25.00  from holding Catalystsmh Total Return or generate 5.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Prudential Government Money  vs.  Catalystsmh Total Return

Prudential Government

Risk-Adjusted Performance

Weakest

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

Catalystsmh Total Return

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystsmh Total Return are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Catalyst/smh Total is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Prudential Government and Catalyst/smh Total

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

The idea behind Prudential Government Money 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.