Correlation Between NYSE Composite and Catalyst Hedged
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Catalyst Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Catalyst Hedged Modity, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Catalyst Hedged.
Diversification Opportunities for NYSE Composite and Catalyst Hedged
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Catalyst is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Catalyst Hedged go up and down completely randomly.
Pair Corralation between NYSE Composite and Catalyst Hedged
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.78 times more return on investment than Catalyst Hedged. However, NYSE Composite is 1.29 times less risky than Catalyst Hedged. It trades about 0.38 of its potential returns per unit of risk. Catalyst Hedged Modity is currently generating about 0.02 per unit of risk. If you would invest 1,924,339 in NYSE Composite on September 4, 2024 and sell it today you would earn a total of 96,983 from holding NYSE Composite or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Catalyst Hedged Modity
Performance |
| Timeline |
NYSE Composite and Catalyst Hedged Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Catalyst Hedged Modity
Pair trading matchups for Catalyst Hedged
Pair Trading with NYSE Composite and Catalyst Hedged
The main advantage of trading using opposite NYSE Composite and Catalyst Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Kite Realty Group | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Meiwu Technology Co | NYSE Composite vs. Uber Technologies |
| Catalyst Hedged vs. Catalystsmh High Income | Catalyst Hedged vs. Catalystsmh High Income | Catalyst Hedged vs. Catalystsmh High Income | Catalyst Hedged 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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