Correlation Between Catalyst/lyons Tactical and Catalyst Exceed
Can any of the company-specific risk be diversified away by investing in both Catalyst/lyons Tactical 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 Catalyst/lyons Tactical and Catalyst Exceed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystlyons Tactical Allocation and Catalyst Exceed Defined, you can compare the effects of market volatilities on Catalyst/lyons Tactical 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 Catalyst/lyons Tactical with a short position of Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/lyons Tactical and Catalyst Exceed.
Diversification Opportunities for Catalyst/lyons Tactical and Catalyst Exceed
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst/lyons and Catalyst is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Catalystlyons Tactical Allocat 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 Catalyst/lyons Tactical 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 Catalystlyons Tactical Allocation 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 Catalyst/lyons Tactical i.e., Catalyst/lyons Tactical and Catalyst Exceed go up and down completely randomly.
Pair Corralation between Catalyst/lyons Tactical and Catalyst Exceed
Assuming the 90 days horizon Catalystlyons Tactical Allocation is expected to generate 0.97 times more return on investment than Catalyst Exceed. However, Catalystlyons Tactical Allocation is 1.03 times less risky than Catalyst Exceed. It trades about 0.17 of its potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.14 per unit of risk. If you would invest 1,441 in Catalystlyons Tactical Allocation on May 23, 2025 and sell it today you would earn a total of 102.00 from holding Catalystlyons Tactical Allocation or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystlyons Tactical Allocat vs. Catalyst Exceed Defined
Performance |
| Timeline |
| Catalyst/lyons Tactical |
| Catalyst Exceed Defined |
Catalyst/lyons Tactical and Catalyst Exceed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/lyons Tactical and Catalyst Exceed
The main advantage of trading using opposite Catalyst/lyons Tactical and Catalyst Exceed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/lyons Tactical 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.| Catalyst/lyons Tactical vs. Schwab Health Care | Catalyst/lyons Tactical vs. Hartford Healthcare Hls | Catalyst/lyons Tactical vs. Putnam Global Health | Catalyst/lyons Tactical vs. Prudential Health Sciences |
| Catalyst Exceed vs. Jpmorgan Hedged Equity | Catalyst Exceed vs. Jpmorgan Hedged Equity | Catalyst Exceed vs. Jpmorgan Hedged Equity | Catalyst Exceed vs. Gateway Fund Class |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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