Correlation Between Wesmark Government and Catalyst Exceed
Can any of the company-specific risk be diversified away by investing in both Wesmark Government and Catalyst Exceed 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 Wesmark Government and Catalyst Exceed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesmark Government Bond and Catalyst Exceed Defined, you can compare the effects of market volatilities on Wesmark Government and Catalyst Exceed 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 Wesmark Government with a short position of Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Government and Catalyst Exceed.
Diversification Opportunities for Wesmark Government and Catalyst Exceed
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wesmark and Catalyst is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Government Bond and Catalyst Exceed Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Exceed Defined and Wesmark Government 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 Wesmark Government Bond are associated (or correlated) with Catalyst Exceed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Exceed Defined has no effect on the direction of Wesmark Government i.e., Wesmark Government and Catalyst Exceed go up and down completely randomly.
Pair Corralation between Wesmark Government and Catalyst Exceed
Assuming the 90 days horizon Wesmark Government Bond is expected to under-perform the Catalyst Exceed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Wesmark Government Bond is 2.46 times less risky than Catalyst Exceed. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Catalyst Exceed Defined is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,190 in Catalyst Exceed Defined on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Catalyst Exceed Defined or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Wesmark Government Bond vs. Catalyst Exceed Defined
Performance |
| Timeline |
| Wesmark Government Bond |
| Catalyst Exceed Defined |
Wesmark Government and Catalyst Exceed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesmark Government and Catalyst Exceed
The main advantage of trading using opposite Wesmark Government and Catalyst Exceed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesmark Government position performs unexpectedly, Catalyst Exceed 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 Exceed will offset losses from the drop in Catalyst Exceed's long position.| Wesmark Government vs. Wesmark Growth Fund | Wesmark Government vs. Wesmark Small Pany | Wesmark Government vs. Wesmark Balanced Fund | Wesmark Government vs. Federated International Leaders |
| Catalyst Exceed vs. Lord Abbett Government | Catalyst Exceed vs. Davis Government Bond | Catalyst Exceed vs. Inverse Government Long | Catalyst Exceed vs. Wesmark Government Bond |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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