Correlation Between Catalent and Lake Resources
Can any of the company-specific risk be diversified away by investing in both Catalent and Lake Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Catalent and Lake Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalent and Lake Resources NL, you can compare the effects of market volatilities on Catalent and Lake Resources 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 Catalent with a short position of Lake Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalent and Lake Resources.
Diversification Opportunities for Catalent and Lake Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalent and Lake is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalent and Lake Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lake Resources NL and Catalent 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 Catalent are associated (or correlated) with Lake Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lake Resources NL has no effect on the direction of Catalent i.e., Catalent and Lake Resources go up and down completely randomly.
Pair Corralation between Catalent and Lake Resources
If you would invest (100.00) in Catalent on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Catalent or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Catalent vs. Lake Resources NL
Performance |
| Timeline |
| Catalent |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Lake Resources NL |
Catalent and Lake Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalent and Lake Resources
The main advantage of trading using opposite Catalent and Lake Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalent position performs unexpectedly, Lake Resources 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 Lake Resources will offset losses from the drop in Lake Resources' long position.| Catalent vs. IQVIA Holdings | Catalent vs. West Pharmaceutical Services | Catalent vs. Charles River Laboratories | Catalent vs. Bio Rad Laboratories |
| Lake Resources vs. Alto Ingredients | Lake Resources vs. Coty Inc | Lake Resources vs. flyExclusive, | Lake Resources vs. Delek Logistics Partners |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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