Correlation Between Catalyst Pharmaceuticals and OZ Minerals
Can any of the company-specific risk be diversified away by investing in both Catalyst Pharmaceuticals and OZ Minerals 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 OZ Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Pharmaceuticals and OZ Minerals Limited, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and OZ Minerals 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 OZ Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and OZ Minerals.
Diversification Opportunities for Catalyst Pharmaceuticals and OZ Minerals
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Catalyst and OZMLF is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and OZ Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OZ Minerals Limited 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 OZ Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OZ Minerals Limited has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and OZ Minerals go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and OZ Minerals
If you would invest 2,146 in Catalyst Pharmaceuticals on August 26, 2024 and sell it today you would earn a total of 2.00 from holding Catalyst Pharmaceuticals or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. OZ Minerals Limited
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catalyst Pharmaceuticals and OZ Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and OZ Minerals
The main advantage of trading using opposite Catalyst Pharmaceuticals and OZ Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, OZ Minerals 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 OZ Minerals will offset losses from the drop in OZ Minerals' long position.| Catalyst Pharmaceuticals vs. Eliem Therapeutics | Catalyst Pharmaceuticals vs. HCW Biologics | Catalyst Pharmaceuticals vs. Scpharmaceuticals | Catalyst Pharmaceuticals vs. Milestone Pharmaceuticals |
| OZ Minerals vs. Westinghouse Air Brake | OZ Minerals vs. BioNTech SE | OZ Minerals vs. Valneva SE ADR | OZ Minerals vs. Catalyst Pharmaceuticals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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