Correlation Between Catalyst/millburn and Catalyst Hedged
Can any of the company-specific risk be diversified away by investing in both Catalyst/millburn 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/millburn and Catalyst Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystmillburn Dynamic Commodity and Catalyst Hedged Modity, you can compare the effects of market volatilities on Catalyst/millburn 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/millburn with a short position of Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/millburn and Catalyst Hedged.
Diversification Opportunities for Catalyst/millburn and Catalyst Hedged
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Catalyst/millburn and Catalyst is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmillburn Dynamic Commo 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/millburn 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 Catalystmillburn Dynamic Commodity 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/millburn i.e., Catalyst/millburn and Catalyst Hedged go up and down completely randomly.
Pair Corralation between Catalyst/millburn and Catalyst Hedged
Assuming the 90 days horizon Catalystmillburn Dynamic Commodity is expected to generate 1.0 times more return on investment than Catalyst Hedged. However, Catalystmillburn Dynamic Commodity is 1.0 times less risky than Catalyst Hedged. It trades about -0.01 of its potential returns per unit of risk. Catalyst Hedged Modity is currently generating about -0.01 per unit of risk. If you would invest 992.00 in Catalystmillburn Dynamic Commodity on September 1, 2024 and sell it today you would lose (13.00) from holding Catalystmillburn Dynamic Commodity or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystmillburn Dynamic Commo vs. Catalyst Hedged Modity
Performance |
| Timeline |
| Catalystmillburn Dyn |
| Catalyst Hedged Modity |
Catalyst/millburn and Catalyst Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/millburn and Catalyst Hedged
The main advantage of trading using opposite Catalyst/millburn and Catalyst Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/millburn 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/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalyst Mlp Infrastructure |
| Catalyst Hedged vs. Aqr Diversified Arbitrage | Catalyst Hedged vs. Jhancock Diversified Macro | Catalyst Hedged vs. Tax Managed Mid Small | Catalyst Hedged vs. Delaware Limited Term Diversified |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |