Correlation Between Valic Company and Catalystaspect Enhanced

Can any of the company-specific risk be diversified away by investing in both Valic Company and Catalystaspect Enhanced 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 Valic Company and Catalystaspect Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Valic Company I and Catalystaspect Enhanced Multi Asset, you can compare the effects of market volatilities on Valic Company and Catalystaspect Enhanced 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 Valic Company with a short position of Catalystaspect Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Catalystaspect Enhanced.

Diversification Opportunities for Valic Company and Catalystaspect Enhanced

0.95

Correlation Coefficient

Valic Company  Catalystaspect Enhanced

Almost no diversification

The 3 months correlation between Valic and Catalystaspect is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Catalystaspect Enhanced Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystaspect Enhanced and Valic Company 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 Valic Company I are associated (or correlated) with Catalystaspect Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystaspect Enhanced has no effect on the direction of Valic Company i.e., Valic Company and Catalystaspect Enhanced go up and down completely randomly.

Pair Corralation between Valic Company and Catalystaspect Enhanced

Assuming the 90 days horizon Valic Company I is expected to generate 1.6 times more return on investment than Catalystaspect Enhanced. However, Valic Company is 1.6 times more volatile than Catalystaspect Enhanced Multi Asset. It trades about 0.13 of its potential returns per unit of risk. Catalystaspect Enhanced Multi Asset is currently generating about 0.19 per unit of risk. If you would invest  1,081  in Valic Company I on May 4, 2025 and sell it today you would earn a total of  94.00  from holding Valic Company I or generate 8.7% return on investment over 90 days.

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

Valic Company I  vs.  Catalystaspect Enhanced Multi

Valic Company I

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Valic Company I are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Valic Company may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Catalystaspect Enhanced

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystaspect Enhanced Multi Asset are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Catalystaspect Enhanced may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Valic Company and Catalystaspect Enhanced

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

The idea behind Valic Company I and Catalystaspect Enhanced Multi Asset 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.