Correlation Between Catalystexceed Defined and Catalyst Exceed

Can any of the company-specific risk be diversified away by investing in both Catalystexceed Defined and Catalyst Exceed 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 Catalystexceed Defined and Catalyst Exceed 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 Catalyst Exceed Defined, you can compare the effects of market volatilities on Catalystexceed Defined and Catalyst Exceed 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 Catalystexceed Defined with a short position of Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalystexceed Defined and Catalyst Exceed.

Diversification Opportunities for Catalystexceed Defined and Catalyst Exceed

0.99

Correlation Coefficient

Catalystexceed Defined  Catalyst Exceed

No risk reduction

The 3 months correlation between Catalystexceed and Catalyst is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Catalystexceed Defined Shield and Catalyst Exceed Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Exceed Defined and Catalystexceed 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 Catalyst Exceed. 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 Catalystexceed Defined i.e., Catalystexceed Defined and Catalyst Exceed go up and down completely randomly.

Pair Corralation between Catalystexceed Defined and Catalyst Exceed

Assuming the 90 days horizon Catalystexceed Defined is expected to generate 1.61 times less return on investment than Catalyst Exceed. But when comparing it to its historical volatility, Catalystexceed Defined Shield is 1.71 times less risky than Catalyst Exceed. It trades about 0.3 of its potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,231  in Catalyst Exceed Defined on April 30, 2025 and sell it today you would earn a total of  174.00  from holding Catalyst Exceed Defined or generate 14.13% return on investment over 90 days.

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

Catalystexceed Defined Shield  vs.  Catalyst Exceed Defined

Catalystexceed Defined

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystexceed Defined Shield are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Catalystexceed Defined may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Catalyst Exceed Defined

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Exceed Defined are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalyst Exceed showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Catalystexceed Defined and Catalyst Exceed

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

The idea behind Catalystexceed Defined Shield and Catalyst Exceed Defined 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.