Correlation Between Catalyst Pharmaceuticals and Roma Green
Can any of the company-specific risk be diversified away by investing in both Catalyst Pharmaceuticals and Roma Green 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 Roma Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Pharmaceuticals and Roma Green Finance, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and Roma Green 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 Roma Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Roma Green.
Diversification Opportunities for Catalyst Pharmaceuticals and Roma Green
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Catalyst and Roma is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and Roma Green Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roma Green Finance 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 Roma Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roma Green Finance has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Roma Green go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Roma Green
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 1.11 times more return on investment than Roma Green. However, Catalyst Pharmaceuticals is 1.11 times more volatile than Roma Green Finance. It trades about 0.09 of its potential returns per unit of risk. Roma Green Finance is currently generating about -0.28 per unit of risk. If you would invest 2,160 in Catalyst Pharmaceuticals on October 23, 2024 and sell it today you would earn a total of 132.00 from holding Catalyst Pharmaceuticals or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. Roma Green Finance
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| Roma Green Finance |
Catalyst Pharmaceuticals and Roma Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and Roma Green
The main advantage of trading using opposite Catalyst Pharmaceuticals and Roma Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, Roma Green 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 Roma Green will offset losses from the drop in Roma Green's long position.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
| Roma Green vs. Boston Beer | Roma Green vs. RadNet Inc | Roma Green vs. Japan Tobacco ADR | Roma Green 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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