Correlation Between Catalystmap Global and Catalystsmh Total

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

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

Diversification Opportunities for Catalystmap Global and Catalystsmh Total

0.0

Correlation Coefficient

Catalystmap Global  Catalystsmh Total

Pay attention - limited upside

The 3 months correlation between Catalystmap and Catalystsmh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmap Global Balanced and Catalystsmh Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh Total Return and Catalystmap Global 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 Catalystmap Global Balanced are associated (or correlated) with Catalystsmh Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh Total Return has no effect on the direction of Catalystmap Global i.e., Catalystmap Global and Catalystsmh Total go up and down completely randomly.

Pair Corralation between Catalystmap Global and Catalystsmh Total

If you would invest  1,158  in Catalystmap Global Balanced on April 26, 2025 and sell it today you would earn a total of  78.00  from holding Catalystmap Global Balanced or generate 6.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Catalystmap Global Balanced  vs.  Catalystsmh Total Return

Catalystmap Global

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Balanced are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalystmap Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Catalystsmh Total Return

Risk-Adjusted Performance

Solid

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

Pair Trading with Catalystmap Global and Catalystsmh Total

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

The idea behind Catalystmap Global Balanced and Catalystsmh Total Return 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.