Correlation Between Catalyst Exceed and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Catalyst Exceed and Aqr Diversified 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 Catalyst Exceed and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Exceed Defined and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Catalyst Exceed and Aqr Diversified 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 Catalyst Exceed with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Exceed and Aqr Diversified.
Diversification Opportunities for Catalyst Exceed and Aqr Diversified
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Catalyst and Aqr is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Catalyst Exceed 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 Catalyst Exceed Defined are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and Aqr Diversified go up and down completely randomly.
Pair Corralation between Catalyst Exceed and Aqr Diversified
Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate 8.1 times more return on investment than Aqr Diversified. However, Catalyst Exceed is 8.1 times more volatile than Aqr Diversified Arbitrage. It trades about 0.12 of its potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.34 per unit of risk. If you would invest 1,213 in Catalyst Exceed Defined on May 27, 2025 and sell it today you would earn a total of 61.00 from holding Catalyst Exceed Defined or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Exceed Defined vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Catalyst Exceed Defined |
| Aqr Diversified Arbitrage |
Catalyst Exceed and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Exceed and Aqr Diversified
The main advantage of trading using opposite Catalyst Exceed and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Exceed position performs unexpectedly, Aqr Diversified 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 Aqr Diversified will offset losses from the drop in Aqr Diversified's long position.| Catalyst Exceed vs. Fidelity Large Cap | Catalyst Exceed vs. Qs Large Cap | Catalyst Exceed vs. Transamerica Large Cap | Catalyst Exceed vs. Tax Managed Large Cap |
| Aqr Diversified vs. Virtus High Yield | Aqr Diversified vs. Morningstar Aggressive Growth | Aqr Diversified vs. Metropolitan West High | Aqr Diversified vs. Saat Tax Managed Aggressive |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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