Correlation Between Catalent and EXELON
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By analyzing existing cross correlation between Catalent and EXELON GENERATION LLC, you can compare the effects of market volatilities on Catalent and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalent and EXELON.
Diversification Opportunities for Catalent and EXELON
Very weak diversification
The 3 months correlation between Catalent and EXELON is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Catalent and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Catalent i.e., Catalent and EXELON go up and down completely randomly.
Pair Corralation between Catalent and EXELON
Given the investment horizon of 90 days Catalent is expected to generate 0.62 times more return on investment than EXELON. However, Catalent is 1.61 times less risky than EXELON. It trades about 0.13 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about 0.03 per unit of risk. If you would invest 5,547 in Catalent on September 3, 2024 and sell it today you would earn a total of 596.00 from holding Catalent or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.0% |
| Values | Daily Returns |
Catalent vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Catalent |
| EXELON GENERATION LLC |
Catalent and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalent and EXELON
The main advantage of trading using opposite Catalent and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalent position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| Catalent vs. IQVIA Holdings | Catalent vs. West Pharmaceutical Services | Catalent vs. Charles River Laboratories | Catalent vs. Bio Rad Laboratories |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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