Correlation Between Catalyst Pharmaceuticals and GOLDMAN
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By analyzing existing cross correlation between Catalyst Pharmaceuticals and GOLDMAN SACHS GROUP, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and GOLDMAN 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 GOLDMAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and GOLDMAN.
Diversification Opportunities for Catalyst Pharmaceuticals and GOLDMAN
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and GOLDMAN is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and GOLDMAN SACHS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDMAN SACHS GROUP 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 GOLDMAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDMAN SACHS GROUP has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and GOLDMAN go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and GOLDMAN
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 4.89 times more return on investment than GOLDMAN. However, Catalyst Pharmaceuticals is 4.89 times more volatile than GOLDMAN SACHS GROUP. It trades about 0.08 of its potential returns per unit of risk. GOLDMAN SACHS GROUP is currently generating about 0.01 per unit of risk. If you would invest 1,162 in Catalyst Pharmaceuticals on September 1, 2024 and sell it today you would earn a total of 1,045 from holding Catalyst Pharmaceuticals or generate 89.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. GOLDMAN SACHS GROUP
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| GOLDMAN SACHS GROUP |
Catalyst Pharmaceuticals and GOLDMAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and GOLDMAN
The main advantage of trading using opposite Catalyst Pharmaceuticals and GOLDMAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, GOLDMAN 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 GOLDMAN will offset losses from the drop in GOLDMAN's long position.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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