Correlation Between Multisector Bond and Catalyst/cifc Floating
Can any of the company-specific risk be diversified away by investing in both Multisector Bond and Catalyst/cifc Floating 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 Multisector Bond and Catalyst/cifc Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Catalystcifc Floating Rate, you can compare the effects of market volatilities on Multisector Bond and Catalyst/cifc Floating 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 Multisector Bond with a short position of Catalyst/cifc Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Catalyst/cifc Floating.
Diversification Opportunities for Multisector Bond and Catalyst/cifc Floating
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Multisector and Catalyst/cifc is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Catalystcifc Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/cifc Floating and Multisector Bond 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 Multisector Bond Sma are associated (or correlated) with Catalyst/cifc Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/cifc Floating has no effect on the direction of Multisector Bond i.e., Multisector Bond and Catalyst/cifc Floating go up and down completely randomly.
Pair Corralation between Multisector Bond and Catalyst/cifc Floating
Assuming the 90 days horizon Multisector Bond is expected to generate 23.27 times less return on investment than Catalyst/cifc Floating. But when comparing it to its historical volatility, Multisector Bond Sma is 33.86 times less risky than Catalyst/cifc Floating. It trades about 0.08 of its potential returns per unit of risk. Catalystcifc Floating Rate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 782.00 in Catalystcifc Floating Rate on October 25, 2024 and sell it today you would earn a total of 143.00 from holding Catalystcifc Floating Rate or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Multisector Bond Sma vs. Catalystcifc Floating Rate
Performance |
| Timeline |
| Multisector Bond Sma |
| Catalyst/cifc Floating |
Multisector Bond and Catalyst/cifc Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Catalyst/cifc Floating
The main advantage of trading using opposite Multisector Bond and Catalyst/cifc Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond position performs unexpectedly, Catalyst/cifc Floating 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/cifc Floating will offset losses from the drop in Catalyst/cifc Floating's long position.| Multisector Bond vs. Goldman Sachs Short Term | Multisector Bond vs. Vy T Rowe | Multisector Bond vs. Valic Company I | Multisector Bond vs. Lord Abbett Diversified |
| Catalyst/cifc Floating vs. Glg Intl Small | Catalyst/cifc Floating vs. Buffalo Small Cap | Catalyst/cifc Floating vs. Franklin Small Cap | Catalyst/cifc Floating vs. Tax Managed Mid Small |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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