Correlation Between Catalyst Exceed and Simt Real

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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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Catalyst Exceed Defined  vs.  Simt Real Return

 Performance 
       Timeline  
Catalyst Exceed Defined 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Exceed Defined are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Catalyst Exceed showed solid returns over the last few months and may actually be approaching a breakup point.
Simt Real Return 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Simt Real Return are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Catalyst Exceed Defined and Simt Real Return pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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