Correlation Between Real Estate and Catalystmap Global

Can any of the company-specific risk be diversified away by investing in both Real Estate 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 Real Estate and Catalystmap Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Real Estate and Catalystmap Global

0.66

Correlation Coefficient

Real Estate  Catalystmap Global

Poor diversification

The 3 months correlation between Real and Catalystmap is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Ultrasector and Catalystmap Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global and Real Estate 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 Real Estate Ultrasector 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 has no effect on the direction of Real Estate i.e., Real Estate and Catalystmap Global go up and down completely randomly.

Pair Corralation between Real Estate and Catalystmap Global

Assuming the 90 days horizon Real Estate Ultrasector is expected to generate 4.27 times more return on investment than Catalystmap Global. However, Real Estate is 4.27 times more volatile than Catalystmap Global Balanced. It trades about 0.1 of its potential returns per unit of risk. Catalystmap Global Balanced is currently generating about 0.35 per unit of risk. If you would invest  4,038  in Real Estate Ultrasector on April 28, 2025 and sell it today you would earn a total of  293.00  from holding Real Estate Ultrasector or generate 7.26% return on investment over 90 days.

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

Real Estate Ultrasector  vs.  Catalystmap Global Balanced

Real Estate Ultrasector

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Real Estate Ultrasector are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Real Estate may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Catalystmap Global

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Balanced are ranked lower than 27 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalystmap Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Real Estate and Catalystmap Global

The main advantage of trading using opposite Real Estate and Catalystmap Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Estate 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 Real Estate Ultrasector and Catalystmap Global Balanced 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.