Correlation Between Catalyst Pharmaceuticals and Newell
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By analyzing existing cross correlation between Catalyst Pharmaceuticals and Newell Brands 42, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and Newell 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 Newell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Newell.
Diversification Opportunities for Catalyst Pharmaceuticals and Newell
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and Newell is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and Newell Brands 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands 42 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 Newell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newell Brands 42 has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Newell go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Newell
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 2.83 times more return on investment than Newell. However, Catalyst Pharmaceuticals is 2.83 times more volatile than Newell Brands 42. It trades about 0.15 of its potential returns per unit of risk. Newell Brands 42 is currently generating about -0.03 per unit of risk. If you would invest 1,506 in Catalyst Pharmaceuticals on September 12, 2024 and sell it today you would earn a total of 705.00 from holding Catalyst Pharmaceuticals or generate 46.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. Newell Brands 42
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| Newell Brands 42 |
Catalyst Pharmaceuticals and Newell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and Newell
The main advantage of trading using opposite Catalyst Pharmaceuticals and Newell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, Newell 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 Newell will offset losses from the drop in Newell'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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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