Correlation Between Mid-cap 15x and Catalystmillburn
Can any of the company-specific risk be diversified away by investing in both Mid-cap 15x and Catalystmillburn 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 Mid-cap 15x and Catalystmillburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap 15x Strategy and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Mid-cap 15x and Catalystmillburn 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 Mid-cap 15x with a short position of Catalystmillburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap 15x and Catalystmillburn.
Diversification Opportunities for Mid-cap 15x and Catalystmillburn
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mid-cap and Catalystmillburn is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap 15x Strategy and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge and Mid-cap 15x 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 Mid Cap 15x Strategy are associated (or correlated) with Catalystmillburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Mid-cap 15x i.e., Mid-cap 15x and Catalystmillburn go up and down completely randomly.
Pair Corralation between Mid-cap 15x and Catalystmillburn
Assuming the 90 days horizon Mid Cap 15x Strategy is expected to generate 1.98 times more return on investment than Catalystmillburn. However, Mid-cap 15x is 1.98 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.22 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.11 per unit of risk. If you would invest 13,108 in Mid Cap 15x Strategy on November 3, 2024 and sell it today you would earn a total of 753.00 from holding Mid Cap 15x Strategy or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap 15x Strategy vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Mid Cap 15x |
| Catalystmillburn Hedge |
Mid-cap 15x and Catalystmillburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap 15x and Catalystmillburn
The main advantage of trading using opposite Mid-cap 15x and Catalystmillburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap 15x position performs unexpectedly, Catalystmillburn 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 Catalystmillburn will offset losses from the drop in Catalystmillburn's long position.| Mid-cap 15x vs. Eagle Mlp Strategy | Mid-cap 15x vs. Franklin Emerging Market | Mid-cap 15x vs. Angel Oak Multi Strategy | Mid-cap 15x vs. Vy Jpmorgan Emerging |
| Catalystmillburn vs. Tfa Alphagen Growth | Catalystmillburn vs. Glg Intl Small | Catalystmillburn vs. Qs Large Cap | Catalystmillburn vs. Versatile Bond Portfolio |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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