Correlation Between CHUBB and Catalyst Pharmaceuticals
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By analyzing existing cross correlation between CHUBB P 6 and Catalyst Pharmaceuticals, you can compare the effects of market volatilities on CHUBB and Catalyst Pharmaceuticals 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 CHUBB with a short position of Catalyst Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHUBB and Catalyst Pharmaceuticals.
Diversification Opportunities for CHUBB and Catalyst Pharmaceuticals
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CHUBB and Catalyst is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding CHUBB P 6 and Catalyst Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Pharmaceuticals and CHUBB 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 CHUBB P 6 are associated (or correlated) with Catalyst Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Pharmaceuticals has no effect on the direction of CHUBB i.e., CHUBB and Catalyst Pharmaceuticals go up and down completely randomly.
Pair Corralation between CHUBB and Catalyst Pharmaceuticals
Assuming the 90 days trading horizon CHUBB P 6 is expected to generate 0.42 times more return on investment than Catalyst Pharmaceuticals. However, CHUBB P 6 is 2.35 times less risky than Catalyst Pharmaceuticals. It trades about 0.3 of its potential returns per unit of risk. Catalyst Pharmaceuticals is currently generating about -0.12 per unit of risk. If you would invest 10,675 in CHUBB P 6 on September 13, 2024 and sell it today you would earn a total of 613.00 from holding CHUBB P 6 or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
CHUBB P 6 vs. Catalyst Pharmaceuticals
Performance |
| Timeline |
| CHUBB P 6 |
| Catalyst Pharmaceuticals |
CHUBB and Catalyst Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHUBB and Catalyst Pharmaceuticals
The main advantage of trading using opposite CHUBB and Catalyst Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHUBB position performs unexpectedly, Catalyst Pharmaceuticals 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 Pharmaceuticals will offset losses from the drop in Catalyst Pharmaceuticals' long position.| CHUBB vs. Cebu Air ADR | CHUBB vs. Alaska Air Group | CHUBB vs. Aldel Financial II | CHUBB vs. Mesa Air Group |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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