Correlation Between Catalyst/smh High and Delaware Healthcare
Can any of the company-specific risk be diversified away by investing in both Catalyst/smh High and Delaware Healthcare 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/smh High and Delaware Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystsmh High Income and Delaware Healthcare Fund, you can compare the effects of market volatilities on Catalyst/smh High and Delaware Healthcare 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/smh High with a short position of Delaware Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/smh High and Delaware Healthcare.
Diversification Opportunities for Catalyst/smh High and Delaware Healthcare
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst/smh and Delaware is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Catalystsmh High Income and Delaware Healthcare Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Healthcare and Catalyst/smh High 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 Catalystsmh High Income are associated (or correlated) with Delaware Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Healthcare has no effect on the direction of Catalyst/smh High i.e., Catalyst/smh High and Delaware Healthcare go up and down completely randomly.
Pair Corralation between Catalyst/smh High and Delaware Healthcare
Assuming the 90 days horizon Catalystsmh High Income is expected to generate 0.42 times more return on investment than Delaware Healthcare. However, Catalystsmh High Income is 2.37 times less risky than Delaware Healthcare. It trades about 0.24 of its potential returns per unit of risk. Delaware Healthcare Fund is currently generating about 0.07 per unit of risk. If you would invest 369.00 in Catalystsmh High Income on October 24, 2024 and sell it today you would earn a total of 5.00 from holding Catalystsmh High Income or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystsmh High Income vs. Delaware Healthcare Fund
Performance |
| Timeline |
| Catalystsmh High Income |
| Delaware Healthcare |
Catalyst/smh High and Delaware Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/smh High and Delaware Healthcare
The main advantage of trading using opposite Catalyst/smh High and Delaware Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/smh High position performs unexpectedly, Delaware Healthcare 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 Delaware Healthcare will offset losses from the drop in Delaware Healthcare's long position.| Catalyst/smh High vs. Locorr Market Trend | Catalyst/smh High vs. Bbh Trust | Catalyst/smh High vs. Goldman Sachs Local | Catalyst/smh High vs. Artisan Developing World |
| Delaware Healthcare vs. Catalystsmh High Income | Delaware Healthcare vs. Prudential High Yield | Delaware Healthcare vs. Fidelity Focused High | Delaware Healthcare vs. Ab High Income |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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