Correlation Between Catalyst Pharmaceuticals and Lees Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Catalyst Pharmaceuticals and Lees Pharmaceutical 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 Lees Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Pharmaceuticals and Lees Pharmaceutical Holdings, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and Lees Pharmaceutical 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 Lees Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Lees Pharmaceutical.
Diversification Opportunities for Catalyst Pharmaceuticals and Lees Pharmaceutical
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and Lees is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and Lees Pharmaceutical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lees Pharmaceutical 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 Lees Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lees Pharmaceutical has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Lees Pharmaceutical go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Lees Pharmaceutical
If you would invest 2,180 in Catalyst Pharmaceuticals on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Catalyst Pharmaceuticals or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. Lees Pharmaceutical Holdings
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| Lees Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catalyst Pharmaceuticals and Lees Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and Lees Pharmaceutical
The main advantage of trading using opposite Catalyst Pharmaceuticals and Lees Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, Lees Pharmaceutical 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 Lees Pharmaceutical will offset losses from the drop in Lees Pharmaceutical's long position.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
| Lees Pharmaceutical vs. Brunswick | Lees Pharmaceutical vs. Freedom Internet Group | Lees Pharmaceutical vs. Reservoir Media | Lees Pharmaceutical vs. Sphere Entertainment Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |