Correlation Between Catalyst/lyons Tactical and Catalyst Hedged
Can any of the company-specific risk be diversified away by investing in both Catalyst/lyons Tactical 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 Catalyst/lyons Tactical and Catalyst Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystlyons Tactical Allocation and Catalyst Hedged Modity, you can compare the effects of market volatilities on Catalyst/lyons Tactical 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 Catalyst/lyons Tactical with a short position of Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/lyons Tactical and Catalyst Hedged.
Diversification Opportunities for Catalyst/lyons Tactical and Catalyst Hedged
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catalyst/lyons and Catalyst is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Catalystlyons Tactical Allocat 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 Catalyst/lyons 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 Catalystlyons Tactical Allocation 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 Catalyst/lyons Tactical i.e., Catalyst/lyons Tactical and Catalyst Hedged go up and down completely randomly.
Pair Corralation between Catalyst/lyons Tactical and Catalyst Hedged
Assuming the 90 days horizon Catalystlyons Tactical Allocation is expected to generate 1.29 times more return on investment than Catalyst Hedged. However, Catalyst/lyons Tactical is 1.29 times more volatile than Catalyst Hedged Modity. It trades about 0.08 of its potential returns per unit of risk. Catalyst Hedged Modity is currently generating about 0.03 per unit of risk. If you would invest 1,574 in Catalystlyons Tactical Allocation on August 30, 2024 and sell it today you would earn a total of 27.00 from holding Catalystlyons Tactical Allocation or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystlyons Tactical Allocat vs. Catalyst Hedged Modity
Performance |
| Timeline |
| Catalyst/lyons Tactical |
| Catalyst Hedged Modity |
Catalyst/lyons Tactical and Catalyst Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/lyons Tactical and Catalyst Hedged
The main advantage of trading using opposite Catalyst/lyons Tactical and Catalyst Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/lyons Tactical 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.| Catalyst/lyons Tactical vs. Versatile Bond Portfolio | Catalyst/lyons Tactical vs. Ab Impact Municipal | Catalyst/lyons Tactical vs. Maryland Tax Free Bond | Catalyst/lyons Tactical vs. Ambrus Core Bond |
| Catalyst Hedged vs. Davis Financial Fund | Catalyst Hedged vs. Hennessy Large Cap | Catalyst Hedged vs. Pimco Capital Sec | Catalyst Hedged vs. Fidelity Advisor Financial |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |