Correlation Between Catalyst Pharmaceuticals and Energy
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By analyzing existing cross correlation between Catalyst Pharmaceuticals and Energy Transfer 7125, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and Energy 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 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Energy.
Diversification Opportunities for Catalyst Pharmaceuticals and Energy
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Energy is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and Energy Transfer 7125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Transfer 7125 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 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Transfer 7125 has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Energy go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Energy
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 1.43 times more return on investment than Energy. However, Catalyst Pharmaceuticals is 1.43 times more volatile than Energy Transfer 7125. It trades about 0.07 of its potential returns per unit of risk. Energy Transfer 7125 is currently generating about 0.03 per unit of risk. If you would invest 1,473 in Catalyst Pharmaceuticals on September 14, 2024 and sell it today you would earn a total of 648.00 from holding Catalyst Pharmaceuticals or generate 43.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. Energy Transfer 7125
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| Energy Transfer 7125 |
Catalyst Pharmaceuticals and Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and Energy
The main advantage of trading using opposite Catalyst Pharmaceuticals and Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, Energy 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 Energy will offset losses from the drop in Energy's long position.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
| Energy vs. Uber Technologies | Energy vs. Catalyst Pharmaceuticals | Energy vs. Datadog | Energy vs. Acumen 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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