Correlation Between Catalyst Insider and Catalyst/lyons Tactical
Can any of the company-specific risk be diversified away by investing in both Catalyst Insider and Catalyst/lyons Tactical 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 Insider and Catalyst/lyons Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Insider Buying and Catalystlyons Tactical Allocation, you can compare the effects of market volatilities on Catalyst Insider and Catalyst/lyons Tactical 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 Insider with a short position of Catalyst/lyons Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Insider and Catalyst/lyons Tactical.
Diversification Opportunities for Catalyst Insider and Catalyst/lyons Tactical
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst and Catalyst/lyons is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Insider Buying and Catalystlyons Tactical Allocat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/lyons Tactical and Catalyst Insider 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 Insider Buying are associated (or correlated) with Catalyst/lyons Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/lyons Tactical has no effect on the direction of Catalyst Insider i.e., Catalyst Insider and Catalyst/lyons Tactical go up and down completely randomly.
Pair Corralation between Catalyst Insider and Catalyst/lyons Tactical
Assuming the 90 days horizon Catalyst Insider Buying is expected to generate 1.55 times more return on investment than Catalyst/lyons Tactical. However, Catalyst Insider is 1.55 times more volatile than Catalystlyons Tactical Allocation. It trades about 0.15 of its potential returns per unit of risk. Catalystlyons Tactical Allocation is currently generating about 0.17 per unit of risk. If you would invest 2,349 in Catalyst Insider Buying on June 4, 2025 and sell it today you would earn a total of 218.00 from holding Catalyst Insider Buying or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Insider Buying vs. Catalystlyons Tactical Allocat
Performance |
| Timeline |
| Catalyst Insider Buying |
| Catalyst/lyons Tactical |
Catalyst Insider and Catalyst/lyons Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Insider and Catalyst/lyons Tactical
The main advantage of trading using opposite Catalyst Insider and Catalyst/lyons Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Insider position performs unexpectedly, Catalyst/lyons Tactical 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/lyons Tactical will offset losses from the drop in Catalyst/lyons Tactical's long position.| Catalyst Insider vs. Morgan Stanley Global | Catalyst Insider vs. Jhancock Global Equity | Catalyst Insider vs. Gmo Global Equity | Catalyst Insider vs. Dws Global Macro |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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