Correlation Between Catalyst Pharmaceuticals and Garda
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By analyzing existing cross correlation between Catalyst Pharmaceuticals and Garda World Security, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and Garda 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 Garda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Garda.
Diversification Opportunities for Catalyst Pharmaceuticals and Garda
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and Garda is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and Garda World Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garda World Security 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 Garda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garda World Security has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Garda go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Garda
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 27.34 times more return on investment than Garda. However, Catalyst Pharmaceuticals is 27.34 times more volatile than Garda World Security. It trades about 0.03 of its potential returns per unit of risk. Garda World Security is currently generating about 0.34 per unit of risk. If you would invest 2,189 in Catalyst Pharmaceuticals on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Catalyst Pharmaceuticals or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. Garda World Security
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| Garda World Security |
Catalyst Pharmaceuticals and Garda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and Garda
The main advantage of trading using opposite Catalyst Pharmaceuticals and Garda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, Garda 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 Garda will offset losses from the drop in Garda'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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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