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
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catalyst/lyons and Catalyst is 0.69. 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 1,581 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 1.71% 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. Oppenheimer Gold Special | Catalyst/lyons Tactical vs. Gabelli Gold Fund | Catalyst/lyons Tactical vs. Short Precious Metals | Catalyst/lyons Tactical vs. Gamco Global Gold |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |