Correlation Between Anchor Tactical and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Anchor Tactical and Catalyst/millburn 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 Anchor Tactical and Catalyst/millburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anchor Tactical Equity and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Anchor Tactical and Catalyst/millburn 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 Anchor Tactical with a short position of Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anchor Tactical and Catalyst/millburn.
Diversification Opportunities for Anchor Tactical and Catalyst/millburn
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anchor and Catalyst/millburn is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Anchor Tactical Equity and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge and Anchor Tactical 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 Anchor Tactical Equity are associated (or correlated) with Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Anchor Tactical i.e., Anchor Tactical and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Anchor Tactical and Catalyst/millburn
Assuming the 90 days horizon Anchor Tactical is expected to generate 1.41 times less return on investment than Catalyst/millburn. But when comparing it to its historical volatility, Anchor Tactical Equity is 1.15 times less risky than Catalyst/millburn. It trades about 0.06 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,301 in Catalystmillburn Hedge Strategy on August 26, 2024 and sell it today you would earn a total of 725.00 from holding Catalystmillburn Hedge Strategy or generate 21.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anchor Tactical Equity vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Anchor Tactical Equity |
| Catalystmillburn Hedge |
Anchor Tactical and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anchor Tactical and Catalyst/millburn
The main advantage of trading using opposite Anchor Tactical and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anchor Tactical position performs unexpectedly, Catalyst/millburn 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/millburn will offset losses from the drop in Catalyst/millburn's long position.| Anchor Tactical vs. Anchor Tactical Credit | Anchor Tactical vs. Catalystmillburn Hedge Strategy | Anchor Tactical vs. Anchor Risk Managed | Anchor Tactical vs. Kensington Managed Income |
| Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalyst Mlp Infrastructure |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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