Correlation Between Catalyst Pharmaceuticals and ACGCAP
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By analyzing existing cross correlation between Catalyst Pharmaceuticals and ACGCAP 195 30 JAN 26, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and ACGCAP 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 ACGCAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and ACGCAP.
Diversification Opportunities for Catalyst Pharmaceuticals and ACGCAP
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and ACGCAP is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and ACGCAP 195 30 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACGCAP 195 30 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 ACGCAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACGCAP 195 30 has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and ACGCAP go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and ACGCAP
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 1.84 times more return on investment than ACGCAP. However, Catalyst Pharmaceuticals is 1.84 times more volatile than ACGCAP 195 30 JAN 26. It trades about 0.09 of its potential returns per unit of risk. ACGCAP 195 30 JAN 26 is currently generating about -0.01 per unit of risk. If you would invest 1,418 in Catalyst Pharmaceuticals on October 22, 2024 and sell it today you would earn a total of 860.00 from holding Catalyst Pharmaceuticals or generate 60.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.95% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. ACGCAP 195 30 JAN 26
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| ACGCAP 195 30 |
Catalyst Pharmaceuticals and ACGCAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and ACGCAP
The main advantage of trading using opposite Catalyst Pharmaceuticals and ACGCAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, ACGCAP 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 ACGCAP will offset losses from the drop in ACGCAP's long position.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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