Correlation Between Catalyst/warrington and Catalyst Enhanced

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Catalyst/warrington and Catalyst Enhanced 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 Enhanced 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 Enhanced Income, you can compare the effects of market volatilities on Catalyst/warrington and Catalyst Enhanced 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 Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/warrington and Catalyst Enhanced.

Diversification Opportunities for Catalyst/warrington and Catalyst Enhanced

Catalyst/warringtonCatalystDiversified AwayCatalyst/warringtonCatalystDiversified Away100%
-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Catalyst/warrington and Catalyst is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Catalystwarrington Strategic P and Catalyst Enhanced Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Enhanced Income 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 Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Enhanced Income has no effect on the direction of Catalyst/warrington i.e., Catalyst/warrington and Catalyst Enhanced go up and down completely randomly.

Pair Corralation between Catalyst/warrington and Catalyst Enhanced

Assuming the 90 days horizon Catalystwarrington Strategic Program is expected to generate 0.24 times more return on investment than Catalyst Enhanced. However, Catalystwarrington Strategic Program is 4.19 times less risky than Catalyst Enhanced. It trades about 0.14 of its potential returns per unit of risk. Catalyst Enhanced Income is currently generating about 0.02 per unit of risk. If you would invest  924.00  in Catalystwarrington Strategic Program on November 27, 2024 and sell it today you would earn a total of  2.00  from holding Catalystwarrington Strategic Program or generate 0.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

Catalystwarrington Strategic P  vs.  Catalyst Enhanced Income

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1.5-1.0-0.50.00.51.01.5
JavaScript chart by amCharts 3.21.15CWXIX EIXAX
       Timeline  
Catalyst/warrington 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Catalystwarrington Strategic Program are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Catalyst/warrington is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.29.219.229.239.249.259.269.27
Catalyst Enhanced Income 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Catalyst Enhanced Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Catalyst Enhanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7.857.97.9588.05

Catalyst/warrington and Catalyst Enhanced Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.24-0.0915-0.062-0.0325-0.002950.02470.05550.08630.210.41 51015202530
JavaScript chart by amCharts 3.21.15CWXIX EIXAX
       Returns  

Pair Trading with Catalyst/warrington and Catalyst Enhanced

The main advantage of trading using opposite Catalyst/warrington and Catalyst Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/warrington position performs unexpectedly, Catalyst Enhanced 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 Enhanced will offset losses from the drop in Catalyst Enhanced's long position.
The idea behind Catalystwarrington Strategic Program and Catalyst Enhanced Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.