Correlation Between Catalyst/exceed Defined and Health Care

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

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

Diversification Opportunities for Catalyst/exceed Defined and Health Care

0.57

Correlation Coefficient

Catalyst/exceed Defined  Health Care

Very weak diversification

The 3 months correlation between Catalyst/exceed and Health is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Catalystexceed Defined Shield and Health Care Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health Care Fund and Catalyst/exceed Defined 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 Catalystexceed Defined Shield are associated (or correlated) with Health Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Care Fund has no effect on the direction of Catalyst/exceed Defined i.e., Catalyst/exceed Defined and Health Care go up and down completely randomly.

Pair Corralation between Catalyst/exceed Defined and Health Care

Assuming the 90 days horizon Catalyst/exceed Defined is expected to generate 4.67 times less return on investment than Health Care. But when comparing it to its historical volatility, Catalystexceed Defined Shield is 3.6 times less risky than Health Care. It trades about 0.14 of its potential returns per unit of risk. Health Care Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  12,814  in Health Care Fund on September 9, 2025 and sell it today you would earn a total of  1,362  from holding Health Care Fund or generate 10.63% return on investment over 90 days.

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

Catalystexceed Defined Shield  vs.  Health Care Fund

Catalyst/exceed Defined

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystexceed Defined Shield are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental 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.

Health Care Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Health Care Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Health Care may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Catalyst/exceed Defined and Health Care

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

The idea behind Catalystexceed Defined Shield and Health Care Fund 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.