Correlation Between Catalyst/warrington and Catalyst Hedged
Can any of the company-specific risk be diversified away by investing in both Catalyst/warrington and Catalyst Hedged 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 Catalyst/warrington and Catalyst Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystwarrington Strategic Program and Catalyst Hedged Modity, you can compare the effects of market volatilities on Catalyst/warrington and Catalyst Hedged 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/warrington with a short position of Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/warrington and Catalyst Hedged.
Diversification Opportunities for Catalyst/warrington and Catalyst Hedged
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst/warrington and Catalyst is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Catalystwarrington Strategic P and Catalyst Hedged Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Hedged Modity and Catalyst/warrington 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 Catalystwarrington Strategic Program are associated (or correlated) with Catalyst Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Hedged Modity has no effect on the direction of Catalyst/warrington i.e., Catalyst/warrington and Catalyst Hedged go up and down completely randomly.
Pair Corralation between Catalyst/warrington and Catalyst Hedged
Assuming the 90 days horizon Catalystwarrington Strategic Program is expected to generate 0.12 times more return on investment than Catalyst Hedged. However, Catalystwarrington Strategic Program is 8.09 times less risky than Catalyst Hedged. It trades about 0.08 of its potential returns per unit of risk. Catalyst Hedged Modity is currently generating about -0.04 per unit of risk. If you would invest 815.00 in Catalystwarrington Strategic Program on August 26, 2024 and sell it today you would earn a total of 47.00 from holding Catalystwarrington Strategic Program or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystwarrington Strategic P vs. Catalyst Hedged Modity
Performance |
| Timeline |
| Catalyst/warrington |
| Catalyst Hedged Modity |
Catalyst/warrington and Catalyst Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/warrington and Catalyst Hedged
The main advantage of trading using opposite Catalyst/warrington and Catalyst Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/warrington position performs unexpectedly, Catalyst Hedged 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 Catalyst Hedged will offset losses from the drop in Catalyst Hedged's long position.| Catalyst/warrington vs. Jhancock Disciplined Value | Catalyst/warrington vs. Massmutual Select T | Catalyst/warrington vs. Knights Of Umbus | Catalyst/warrington vs. Aqr Large Cap |
| Catalyst Hedged vs. Western Asset High | Catalyst Hedged vs. Alliancebernstein Global High | Catalyst Hedged vs. Franklin High Income | Catalyst Hedged vs. Ab Global Risk |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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