Correlation Between Catalyst Metals and SUPER HI
Can any of the company-specific risk be diversified away by investing in both Catalyst Metals and SUPER HI 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 Metals and SUPER HI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Metals Limited and SUPER HI INTERNATIONAL, you can compare the effects of market volatilities on Catalyst Metals and SUPER HI 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 Metals with a short position of SUPER HI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Metals and SUPER HI.
Diversification Opportunities for Catalyst Metals and SUPER HI
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst and SUPER is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Metals Limited and SUPER HI INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER HI INTERNATIONAL and Catalyst Metals 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 Metals Limited are associated (or correlated) with SUPER HI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER HI INTERNATIONAL has no effect on the direction of Catalyst Metals i.e., Catalyst Metals and SUPER HI go up and down completely randomly.
Pair Corralation between Catalyst Metals and SUPER HI
Assuming the 90 days horizon Catalyst Metals Limited is expected to generate 1.12 times more return on investment than SUPER HI. However, Catalyst Metals is 1.12 times more volatile than SUPER HI INTERNATIONAL. It trades about 0.12 of its potential returns per unit of risk. SUPER HI INTERNATIONAL is currently generating about -0.11 per unit of risk. If you would invest 307.00 in Catalyst Metals Limited on March 20, 2025 and sell it today you would earn a total of 99.00 from holding Catalyst Metals Limited or generate 32.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Metals Limited vs. SUPER HI INTERNATIONAL
Performance |
| Timeline |
| Catalyst Metals |
| SUPER HI INTERNATIONAL |
Catalyst Metals and SUPER HI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Metals and SUPER HI
The main advantage of trading using opposite Catalyst Metals and SUPER HI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Metals position performs unexpectedly, SUPER HI 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 SUPER HI will offset losses from the drop in SUPER HI's long position.| Catalyst Metals vs. Nates Food Co | Catalyst Metals vs. Dine Brands Global | Catalyst Metals vs. BBB Foods | Catalyst Metals vs. Ryman Hospitality Properties |
| SUPER HI vs. Clearmind Medicine Common | SUPER HI vs. Dolphin Entertainment | SUPER HI vs. BioNTech SE | SUPER HI vs. Catalyst Pharmaceuticals |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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