Correlation Between Bogle Small and Catalyst Dynamic
Can any of the company-specific risk be diversified away by investing in both Bogle Small and Catalyst Dynamic 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 Bogle Small and Catalyst Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bogle Small Cap and Catalyst Dynamic Alpha, you can compare the effects of market volatilities on Bogle Small and Catalyst Dynamic 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 Bogle Small with a short position of Catalyst Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bogle Small and Catalyst Dynamic.
Diversification Opportunities for Bogle Small and Catalyst Dynamic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bogle and Catalyst is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bogle Small Cap and Catalyst Dynamic Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Dynamic Alpha and Bogle Small 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 Bogle Small Cap are associated (or correlated) with Catalyst Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Dynamic Alpha has no effect on the direction of Bogle Small i.e., Bogle Small and Catalyst Dynamic go up and down completely randomly.
Pair Corralation between Bogle Small and Catalyst Dynamic
Assuming the 90 days horizon Bogle Small is expected to generate 3.02 times less return on investment than Catalyst Dynamic. In addition to that, Bogle Small is 1.06 times more volatile than Catalyst Dynamic Alpha. It trades about 0.02 of its total potential returns per unit of risk. Catalyst Dynamic Alpha is currently generating about 0.07 per unit of volatility. If you would invest 2,463 in Catalyst Dynamic Alpha on August 12, 2025 and sell it today you would earn a total of 108.00 from holding Catalyst Dynamic Alpha or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bogle Small Cap vs. Catalyst Dynamic Alpha
Performance |
| Timeline |
| Bogle Small Cap |
| Catalyst Dynamic Alpha |
Bogle Small and Catalyst Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bogle Small and Catalyst Dynamic
The main advantage of trading using opposite Bogle Small and Catalyst Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bogle Small position performs unexpectedly, Catalyst Dynamic 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 Dynamic will offset losses from the drop in Catalyst Dynamic's long position.| Bogle Small vs. Sentinel International Equity | Bogle Small vs. Royce International Premier | Bogle Small vs. Wells Fargo Global | Bogle Small vs. Calamos Global Total |
| Catalyst Dynamic vs. Riskproreg Tactical 0 30 | Catalyst Dynamic vs. Sentinel International Equity | Catalyst Dynamic vs. Royce International Premier | Catalyst Dynamic vs. Bogle Small Cap |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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