Correlation Between Catalyst/millburn and Origin Emerging
Can any of the company-specific risk be diversified away by investing in both Catalyst/millburn and Origin Emerging 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 Origin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystmillburn Hedge Strategy and Origin Emerging Markets, you can compare the effects of market volatilities on Catalyst/millburn and Origin Emerging 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 Origin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/millburn and Origin Emerging.
Diversification Opportunities for Catalyst/millburn and Origin Emerging
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst/millburn and Origin is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmillburn Hedge Strateg and Origin Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Emerging Markets 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 Hedge Strategy are associated (or correlated) with Origin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Emerging Markets has no effect on the direction of Catalyst/millburn i.e., Catalyst/millburn and Origin Emerging go up and down completely randomly.
Pair Corralation between Catalyst/millburn and Origin Emerging
Assuming the 90 days horizon Catalystmillburn Hedge Strategy is expected to generate 0.82 times more return on investment than Origin Emerging. However, Catalystmillburn Hedge Strategy is 1.23 times less risky than Origin Emerging. It trades about 0.04 of its potential returns per unit of risk. Origin Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 3,475 in Catalystmillburn Hedge Strategy on October 12, 2024 and sell it today you would earn a total of 502.00 from holding Catalystmillburn Hedge Strategy or generate 14.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Catalystmillburn Hedge Strateg vs. Origin Emerging Markets
Performance |
| Timeline |
| Catalystmillburn Hedge |
| Origin Emerging Markets |
Catalyst/millburn and Origin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/millburn and Origin Emerging
The main advantage of trading using opposite Catalyst/millburn and Origin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/millburn position performs unexpectedly, Origin Emerging 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 Origin Emerging will offset losses from the drop in Origin Emerging's long position.| Catalyst/millburn vs. Msift High Yield | Catalyst/millburn vs. Gmo High Yield | Catalyst/millburn vs. Virtus High Yield | Catalyst/millburn vs. Needham Aggressive Growth |
| Origin Emerging vs. Fidelity New Markets | Origin Emerging vs. Rbc Emerging Markets | Origin Emerging vs. Locorr Market Trend | Origin Emerging vs. Calvert Developed Market |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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