Correlation Between Catalystmillburn and Catalyst/warrington
Can any of the company-specific risk be diversified away by investing in both Catalystmillburn and Catalyst/warrington 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 Catalystmillburn and Catalyst/warrington 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 Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Catalystmillburn and Catalyst/warrington 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 Catalystmillburn with a short position of Catalyst/warrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalystmillburn and Catalyst/warrington.
Diversification Opportunities for Catalystmillburn and Catalyst/warrington
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalystmillburn and Catalyst/warrington is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmillburn Hedge Strateg and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/warrington and Catalystmillburn 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 Catalyst/warrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/warrington has no effect on the direction of Catalystmillburn i.e., Catalystmillburn and Catalyst/warrington go up and down completely randomly.
Pair Corralation between Catalystmillburn and Catalyst/warrington
Assuming the 90 days horizon Catalystmillburn Hedge Strategy is expected to generate 13.4 times more return on investment than Catalyst/warrington. However, Catalystmillburn is 13.4 times more volatile than Catalystwarrington Strategic Program. It trades about 0.28 of its potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.12 per unit of risk. If you would invest 3,717 in Catalystmillburn Hedge Strategy on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Catalystmillburn Hedge Strategy or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Catalystmillburn Hedge Strateg vs. Catalystwarrington Strategic P
Performance |
| Timeline |
| Catalystmillburn Hedge |
| Catalyst/warrington |
Catalystmillburn and Catalyst/warrington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalystmillburn and Catalyst/warrington
The main advantage of trading using opposite Catalystmillburn and Catalyst/warrington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalystmillburn position performs unexpectedly, Catalyst/warrington 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/warrington will offset losses from the drop in Catalyst/warrington's long position.| Catalystmillburn vs. Catalystsmh High Income | Catalystmillburn vs. Catalystsmh High Income | Catalystmillburn vs. Catalystsmh High Income | Catalystmillburn vs. Catalyst Mlp Infrastructure |
| Catalyst/warrington vs. Catalystsmh High Income | Catalyst/warrington vs. Catalystsmh High Income | Catalyst/warrington vs. Catalystsmh High Income | Catalyst/warrington vs. Catalyst Mlp Infrastructure |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges |