Correlation Between Champlain Mid and Catalyst Hedged
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Catalyst Hedged 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 Champlain Mid and Catalyst Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Catalyst Hedged Modity, you can compare the effects of market volatilities on Champlain Mid and Catalyst Hedged 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 Champlain Mid with a short position of Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Catalyst Hedged.
Diversification Opportunities for Champlain Mid and Catalyst Hedged
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Champlain and Catalyst is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and Catalyst Hedged Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Hedged Modity and Champlain Mid 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 Champlain Mid Cap are associated (or correlated) with Catalyst Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Hedged Modity has no effect on the direction of Champlain Mid i.e., Champlain Mid and Catalyst Hedged go up and down completely randomly.
Pair Corralation between Champlain Mid and Catalyst Hedged
Assuming the 90 days horizon Champlain Mid Cap is expected to generate 1.2 times more return on investment than Catalyst Hedged. However, Champlain Mid is 1.2 times more volatile than Catalyst Hedged Modity. It trades about 0.05 of its potential returns per unit of risk. Catalyst Hedged Modity is currently generating about -0.01 per unit of risk. If you would invest 2,097 in Champlain Mid Cap on September 3, 2024 and sell it today you would earn a total of 521.00 from holding Champlain Mid Cap or generate 24.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. Catalyst Hedged Modity
Performance |
| Timeline |
| Champlain Mid Cap |
| Catalyst Hedged Modity |
Champlain Mid and Catalyst Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Catalyst Hedged
The main advantage of trading using opposite Champlain Mid and Catalyst Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Catalyst Hedged 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 Hedged will offset losses from the drop in Catalyst Hedged's long position.| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
| Catalyst Hedged vs. Gabelli Convertible And | Catalyst Hedged vs. Lord Abbett Convertible | Catalyst Hedged vs. Virtus Convertible | Catalyst Hedged vs. Allianzgi Convertible Income |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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