Correlation Between Catalyst/exceed Defined and Catalyst/warrington

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

Diversification Opportunities for Catalyst/exceed Defined and Catalyst/warrington

-0.26

Correlation Coefficient

Catalyst/exceed Defined  Catalyst/warrington

Very good diversification

The 3 months correlation between Catalyst/exceed and Catalyst/warrington is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Catalystexceed Defined Shield and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/warrington 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 Catalyst/warrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/warrington has no effect on the direction of Catalyst/exceed Defined i.e., Catalyst/exceed Defined and Catalyst/warrington go up and down completely randomly.

Pair Corralation between Catalyst/exceed Defined and Catalyst/warrington

Assuming the 90 days horizon Catalystexceed Defined Shield is expected to generate 2.02 times more return on investment than Catalyst/warrington. However, Catalyst/exceed Defined is 2.02 times more volatile than Catalystwarrington Strategic Program. It trades about 0.24 of its potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.05 per unit of risk. If you would invest  1,018  in Catalystexceed Defined Shield on August 1, 2025 and sell it today you would earn a total of  40.00  from holding Catalystexceed Defined Shield or generate 3.93% return on investment over 90 days.

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

Catalystexceed Defined Shield  vs.  Catalystwarrington Strategic P

Catalyst/exceed 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, Catalyst/exceed Defined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Catalyst/warrington

Risk-Adjusted Performance

Weakest

Over the last 90 days Catalystwarrington Strategic Program has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Catalyst/warrington is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Catalyst/exceed Defined and Catalyst/warrington

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

The idea behind Catalystexceed Defined Shield and Catalystwarrington Strategic Program 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 Global Correlations module to find global opportunities by holding instruments from different markets.