Correlation Between Europac Gold and Catalyst/warrington

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Catalyst/warrington 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 Europac Gold and Catalyst/warrington into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Europac Gold and Catalyst/warrington 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 Europac Gold with a short position of Catalyst/warrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Catalyst/warrington.

Diversification Opportunities for Europac Gold and Catalyst/warrington

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Europac and Catalyst/warrington is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/warrington and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Catalyst/warrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/warrington has no effect on the direction of Europac Gold i.e., Europac Gold and Catalyst/warrington go up and down completely randomly.

Pair Corralation between Europac Gold and Catalyst/warrington

Assuming the 90 days horizon Europac Gold Fund is expected to under-perform the Catalyst/warrington. In addition to that, Europac Gold is 14.25 times more volatile than Catalystwarrington Strategic Program. It trades about -0.07 of its total potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.21 per unit of volatility. If you would invest  858.00  in Catalystwarrington Strategic Program on August 19, 2025 and sell it today you would lose (7.00) from holding Catalystwarrington Strategic Program or give up 0.82% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Europac Gold Fund  vs.  Catalystwarrington Strategic P

 Performance 
       Timeline  
Europac Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Europac Gold Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Europac Gold showed solid returns over the last few months and may actually be approaching a breakup point.
Catalyst/warrington 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Catalystwarrington Strategic Program has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Catalyst/warrington is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Europac Gold and Catalyst/warrington Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Europac Gold and Catalyst/warrington

The main advantage of trading using opposite Europac Gold and Catalyst/warrington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Catalyst/warrington 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/warrington will offset losses from the drop in Catalyst/warrington's long position.
The idea behind Europac Gold Fund and Catalystwarrington Strategic Program 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.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing