Correlation Between Energy Fund and Catalyst/exceed Defined

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

By analyzing existing cross correlation between Energy Fund Investor and Catalystexceed Defined Shield, you can compare the effects of market volatilities on Energy Fund and Catalyst/exceed Defined 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 Energy Fund with a short position of Catalyst/exceed Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Fund and Catalyst/exceed Defined.

Diversification Opportunities for Energy Fund and Catalyst/exceed Defined

0.8

Correlation Coefficient

Energy Fund  Catalyst/exceed Defined

Very poor diversification

The 3 months correlation between Energy and Catalyst/exceed is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Energy Fund Investor and Catalystexceed Defined Shield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/exceed Defined and Energy Fund 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 Energy Fund Investor are associated (or correlated) with Catalyst/exceed Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/exceed Defined has no effect on the direction of Energy Fund i.e., Energy Fund and Catalyst/exceed Defined go up and down completely randomly.

Pair Corralation between Energy Fund and Catalyst/exceed Defined

Assuming the 90 days horizon Energy Fund Investor is expected to generate 4.39 times more return on investment than Catalyst/exceed Defined. However, Energy Fund is 4.39 times more volatile than Catalystexceed Defined Shield. It trades about 0.1 of its potential returns per unit of risk. Catalystexceed Defined Shield is currently generating about 0.22 per unit of risk. If you would invest  24,691  in Energy Fund Investor on August 2, 2025 and sell it today you would earn a total of  1,639  from holding Energy Fund Investor or generate 6.64% return on investment over 90 days.

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

Energy Fund Investor  vs.  Catalystexceed Defined Shield

Energy Fund Investor

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Fund Investor are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Energy Fund may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Catalyst/exceed Defined

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystexceed Defined Shield are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Catalyst/exceed Defined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Energy Fund and Catalyst/exceed Defined

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

The idea behind Energy Fund Investor and Catalystexceed Defined Shield 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.