Correlation Between Catalyst Pharmaceuticals and US Global
Can any of the company-specific risk be diversified away by investing in both Catalyst Pharmaceuticals and US Global 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 Pharmaceuticals and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Pharmaceuticals and US Global Investors, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and US Global 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 Pharmaceuticals with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and US Global.
Diversification Opportunities for Catalyst Pharmaceuticals and US Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catalyst and GROW is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and US Global go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and US Global
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 6.91 times more return on investment than US Global. However, Catalyst Pharmaceuticals is 6.91 times more volatile than US Global Investors. It trades about 0.15 of its potential returns per unit of risk. US Global Investors is currently generating about 0.14 per unit of risk. If you would invest 2,019 in Catalyst Pharmaceuticals on November 5, 2024 and sell it today you would earn a total of 243.00 from holding Catalyst Pharmaceuticals or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. US Global Investors
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| US Global Investors |
Catalyst Pharmaceuticals and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and US Global
The main advantage of trading using opposite Catalyst Pharmaceuticals and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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