Correlation Between Catalystexceed Defined and Catalyst/lyons Tactical

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

Diversification Opportunities for Catalystexceed Defined and Catalyst/lyons Tactical

0.94

Correlation Coefficient

Catalystexceed Defined  Catalyst/lyons Tactical

Almost no diversification

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

Pair Corralation between Catalystexceed Defined and Catalyst/lyons Tactical

Assuming the 90 days horizon Catalystexceed Defined is expected to generate 1.11 times less return on investment than Catalyst/lyons Tactical. But when comparing it to its historical volatility, Catalystexceed Defined Shield is 1.74 times less risky than Catalyst/lyons Tactical. It trades about 0.24 of its potential returns per unit of risk. Catalystlyons Tactical Allocation is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,462  in Catalystlyons Tactical Allocation on May 11, 2025 and sell it today you would earn a total of  94.00  from holding Catalystlyons Tactical Allocation or generate 6.43% 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.  Catalystlyons Tactical Allocat

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 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Catalystexceed Defined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Catalyst/lyons Tactical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystlyons Tactical Allocation are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Catalyst/lyons Tactical may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Catalystexceed Defined and Catalyst/lyons Tactical

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

The idea behind Catalystexceed Defined Shield and Catalystlyons Tactical Allocation 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.