Correlation Between Catalyst Metals and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Catalyst Metals and Actinogen Medical 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 Metals and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Metals and Actinogen Medical, you can compare the effects of market volatilities on Catalyst Metals and Actinogen Medical 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 Metals with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Metals and Actinogen Medical.
Diversification Opportunities for Catalyst Metals and Actinogen Medical
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Actinogen is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Metals and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and Catalyst Metals 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 Metals are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Catalyst Metals i.e., Catalyst Metals and Actinogen Medical go up and down completely randomly.
Pair Corralation between Catalyst Metals and Actinogen Medical
Assuming the 90 days trading horizon Catalyst Metals is expected to generate 0.51 times more return on investment than Actinogen Medical. However, Catalyst Metals is 1.95 times less risky than Actinogen Medical. It trades about 0.12 of its potential returns per unit of risk. Actinogen Medical is currently generating about 0.05 per unit of risk. If you would invest 94.00 in Catalyst Metals on August 25, 2024 and sell it today you would earn a total of 230.00 from holding Catalyst Metals or generate 244.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Metals vs. Actinogen Medical
Performance |
| Timeline |
| Catalyst Metals |
| Actinogen Medical |
Catalyst Metals and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Metals and Actinogen Medical
The main advantage of trading using opposite Catalyst Metals and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Metals position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| Catalyst Metals vs. Pinnacle Investment Management | Catalyst Metals vs. TPG Telecom | Catalyst Metals vs. Readytech Holdings | Catalyst Metals vs. Energy Technologies Limited |
| Actinogen Medical vs. Treasury Wine Estates | Actinogen Medical vs. ARN Media Limited | Actinogen Medical vs. Catalyst Metals | Actinogen Medical vs. Charter Hall Retail |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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