Correlation Between Catalystsmh Total and Perkins Small

Can any of the company-specific risk be diversified away by investing in both Catalystsmh Total and Perkins Small 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 Catalystsmh Total and Perkins Small into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Catalystsmh Total Return and Perkins Small Cap, you can compare the effects of market volatilities on Catalystsmh Total and Perkins Small 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 Catalystsmh Total with a short position of Perkins Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalystsmh Total and Perkins Small.

Diversification Opportunities for Catalystsmh Total and Perkins Small

0.93

Correlation Coefficient

Catalystsmh Total  Perkins Small

Almost no diversification

The 3 months correlation between Catalystsmh and Perkins is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Catalystsmh Total Return and Perkins Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Small Cap and Catalystsmh Total 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 Catalystsmh Total Return are associated (or correlated) with Perkins Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Small Cap has no effect on the direction of Catalystsmh Total i.e., Catalystsmh Total and Perkins Small go up and down completely randomly.

Pair Corralation between Catalystsmh Total and Perkins Small

Assuming the 90 days horizon Catalystsmh Total is expected to generate 1.01 times less return on investment than Perkins Small. But when comparing it to its historical volatility, Catalystsmh Total Return is 1.78 times less risky than Perkins Small. It trades about 0.29 of its potential returns per unit of risk. Perkins Small Cap is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,091  in Perkins Small Cap on May 27, 2025 and sell it today you would earn a total of  257.00  from holding Perkins Small Cap or generate 12.29% return on investment over 90 days.

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

Catalystsmh Total Return  vs.  Perkins Small Cap

Catalystsmh Total Return

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystsmh Total Return are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Catalystsmh Total may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Perkins Small Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Perkins Small Cap are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Perkins Small may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Catalystsmh Total and Perkins Small

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

The idea behind Catalystsmh Total Return and Perkins Small 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.