Correlation Between Catalyst Pharmaceuticals and PACIFIC
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By analyzing existing cross correlation between Catalyst Pharmaceuticals and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and PACIFIC.
Diversification Opportunities for Catalyst Pharmaceuticals and PACIFIC
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and PACIFIC is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and PACIFIC go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and PACIFIC
Given the investment horizon of 90 days Catalyst Pharmaceuticals is expected to generate 15.45 times less return on investment than PACIFIC. But when comparing it to its historical volatility, Catalyst Pharmaceuticals is 20.63 times less risky than PACIFIC. It trades about 0.06 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,875 in PACIFIC GAS ELECTRIC on September 12, 2024 and sell it today you would earn a total of 635.00 from holding PACIFIC GAS ELECTRIC or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.44% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| PACIFIC GAS ELECTRIC |
Catalyst Pharmaceuticals and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and PACIFIC
The main advantage of trading using opposite Catalyst Pharmaceuticals and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
| PACIFIC vs. Regeneron Pharmaceuticals | PACIFIC vs. Asbury Automotive Group | PACIFIC vs. Weyco Group | PACIFIC vs. Catalyst 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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