Correlation Between Catalyst Exceed and Simt Real
Can any of the company-specific risk be diversified away by investing in both Catalyst Exceed and Simt Real 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 Simt Real 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 Simt Real Return, you can compare the effects of market volatilities on Catalyst Exceed and Simt Real 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 Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Exceed and Simt Real.
Diversification Opportunities for Catalyst Exceed and Simt Real
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catalyst and Simt is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Exceed Defined and Simt Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Return 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 Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Return has no effect on the direction of Catalyst Exceed i.e., Catalyst Exceed and Simt Real go up and down completely randomly.
Pair Corralation between Catalyst Exceed and Simt Real
Assuming the 90 days horizon Catalyst Exceed Defined is expected to generate 5.53 times more return on investment than Simt Real. However, Catalyst Exceed is 5.53 times more volatile than Simt Real Return. It trades about 0.29 of its potential returns per unit of risk. Simt Real Return is currently generating about 0.08 per unit of risk. If you would invest 1,119 in Catalyst Exceed Defined on April 27, 2025 and sell it today you would earn a total of 164.00 from holding Catalyst Exceed Defined or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Exceed Defined vs. Simt Real Return
Performance |
| Timeline |
| Catalyst Exceed Defined |
| Simt Real Return |
Catalyst Exceed and Simt Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Exceed and Simt Real
The main advantage of trading using opposite Catalyst Exceed and Simt Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Exceed position performs unexpectedly, Simt Real 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 Simt Real will offset losses from the drop in Simt Real's long position.| Catalyst Exceed vs. Dreyfus Large Cap | Catalyst Exceed vs. Americafirst Large Cap | Catalyst Exceed vs. American Mutual Fund | Catalyst Exceed vs. Nuveen Large Cap |
| Simt Real vs. Morningstar Defensive Bond | Simt Real vs. Ab Bond Inflation | Simt Real vs. The National Tax Free | Simt Real vs. Ashmore Emerging Markets |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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