Correlation Between Catcher Technology and Galaxy Software
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Galaxy Software 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 Catcher Technology and Galaxy Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catcher Technology Co and Galaxy Software Services, you can compare the effects of market volatilities on Catcher Technology and Galaxy Software 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 Catcher Technology with a short position of Galaxy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Galaxy Software.
Diversification Opportunities for Catcher Technology and Galaxy Software
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catcher and Galaxy is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Galaxy Software Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Software Services and Catcher Technology 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 Catcher Technology Co are associated (or correlated) with Galaxy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Software Services has no effect on the direction of Catcher Technology i.e., Catcher Technology and Galaxy Software go up and down completely randomly.
Pair Corralation between Catcher Technology and Galaxy Software
Assuming the 90 days trading horizon Catcher Technology Co is expected to generate 0.18 times more return on investment than Galaxy Software. However, Catcher Technology Co is 5.59 times less risky than Galaxy Software. It trades about 0.2 of its potential returns per unit of risk. Galaxy Software Services is currently generating about -0.04 per unit of risk. If you would invest 19,550 in Catcher Technology Co on November 5, 2024 and sell it today you would earn a total of 350.00 from holding Catcher Technology Co or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. Galaxy Software Services
Performance |
| Timeline |
| Catcher Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Galaxy Software Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Catcher Technology and Galaxy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Galaxy Software
The main advantage of trading using opposite Catcher Technology and Galaxy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Galaxy Software 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 Galaxy Software will offset losses from the drop in Galaxy Software's long position.The idea behind Catcher Technology Co and Galaxy Software Services 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.Check out your portfolio center.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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |