Correlation Between Catalyst/exceed Defined and Jacob Micro

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

Diversification Opportunities for Catalyst/exceed Defined and Jacob Micro

0.94

Correlation Coefficient

Catalyst/exceed Defined  Jacob Micro

Almost no diversification

The 3 months correlation between Catalyst/exceed and Jacob is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Catalystexceed Defined Shield and Jacob Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Micro Cap 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 Jacob Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Micro Cap has no effect on the direction of Catalyst/exceed Defined i.e., Catalyst/exceed Defined and Jacob Micro go up and down completely randomly.

Pair Corralation between Catalyst/exceed Defined and Jacob Micro

Assuming the 90 days horizon Catalyst/exceed Defined is expected to generate 4.49 times less return on investment than Jacob Micro. But when comparing it to its historical volatility, Catalystexceed Defined Shield is 7.55 times less risky than Jacob Micro. It trades about 0.17 of its potential returns per unit of risk. Jacob Micro Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,606  in Jacob Micro Cap on August 10, 2025 and sell it today you would earn a total of  281.00  from holding Jacob Micro Cap or generate 10.78% 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.  Jacob Micro Cap

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.

Jacob Micro Cap

Risk-Adjusted Performance

Fair

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

Pair Trading with Catalyst/exceed Defined and Jacob Micro

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

The idea behind Catalystexceed Defined Shield and Jacob Micro Cap 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.