Correlation Between Catalyst Dynamic and Aam Select
Can any of the company-specific risk be diversified away by investing in both Catalyst Dynamic and Aam Select 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 Dynamic and Aam Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Dynamic Alpha and Aam Select Income, you can compare the effects of market volatilities on Catalyst Dynamic and Aam Select 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 Dynamic with a short position of Aam Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Dynamic and Aam Select.
Diversification Opportunities for Catalyst Dynamic and Aam Select
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Catalyst and Aam is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Dynamic Alpha and Aam Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aam Select Income and Catalyst Dynamic 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 Dynamic Alpha are associated (or correlated) with Aam Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aam Select Income has no effect on the direction of Catalyst Dynamic i.e., Catalyst Dynamic and Aam Select go up and down completely randomly.
Pair Corralation between Catalyst Dynamic and Aam Select
Assuming the 90 days horizon Catalyst Dynamic Alpha is expected to generate 8.15 times more return on investment than Aam Select. However, Catalyst Dynamic is 8.15 times more volatile than Aam Select Income. It trades about 0.05 of its potential returns per unit of risk. Aam Select Income is currently generating about 0.03 per unit of risk. If you would invest 2,605 in Catalyst Dynamic Alpha on September 13, 2025 and sell it today you would earn a total of 31.00 from holding Catalyst Dynamic Alpha or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Dynamic Alpha vs. Aam Select Income
Performance |
| Timeline |
| Catalyst Dynamic Alpha |
| Aam Select Income |
Catalyst Dynamic and Aam Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Dynamic and Aam Select
The main advantage of trading using opposite Catalyst Dynamic and Aam Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Dynamic position performs unexpectedly, Aam Select 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 Aam Select will offset losses from the drop in Aam Select's long position.| 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 |
| Aam Select vs. Sprott Gold Equity | Aam Select vs. Precious Metals And | Aam Select vs. Europac Gold Fund | Aam Select vs. Global Gold Fund |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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