Correlation Between Catalyst/exceed Defined and Grayscale Funds

Can any of the company-specific risk be diversified away by investing in both Catalyst/exceed Defined and Grayscale Funds 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 Grayscale Funds 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 Grayscale Funds Trust, you can compare the effects of market volatilities on Catalyst/exceed Defined and Grayscale Funds 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 Grayscale Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/exceed Defined and Grayscale Funds.

Diversification Opportunities for Catalyst/exceed Defined and Grayscale Funds

-0.64

Correlation Coefficient

Catalyst/exceed Defined  Grayscale Funds

Excellent diversification

The 3 months correlation between Catalyst/exceed and Grayscale is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Catalystexceed Defined Shield and Grayscale Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Funds Trust 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 Grayscale Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Funds Trust has no effect on the direction of Catalyst/exceed Defined i.e., Catalyst/exceed Defined and Grayscale Funds go up and down completely randomly.

Pair Corralation between Catalyst/exceed Defined and Grayscale Funds

Assuming the 90 days horizon Catalystexceed Defined Shield is expected to generate 0.12 times more return on investment than Grayscale Funds. However, Catalystexceed Defined Shield is 8.31 times less risky than Grayscale Funds. It trades about 0.17 of its potential returns per unit of risk. Grayscale Funds Trust is currently generating about -0.17 per unit of risk. If you would invest  1,081  in Catalystexceed Defined Shield on August 15, 2025 and sell it today you would earn a total of  28.00  from holding Catalystexceed Defined Shield or generate 2.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Catalystexceed Defined Shield  vs.  Grayscale Funds Trust

Catalyst/exceed Defined

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystexceed Defined Shield are ranked lower than 13 (%) 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.

Grayscale Funds Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Grayscale Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's fundamental indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with Catalyst/exceed Defined and Grayscale Funds

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

The idea behind Catalystexceed Defined Shield and Grayscale Funds Trust 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.