Correlation Between Perkins Small and Catalyst Exceed
Can any of the company-specific risk be diversified away by investing in both Perkins Small 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 Perkins Small and Catalyst Exceed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perkins Small Cap and Catalyst Exceed Defined, you can compare the effects of market volatilities on Perkins Small 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 Perkins Small with a short position of Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perkins Small and Catalyst Exceed.
Diversification Opportunities for Perkins Small and Catalyst Exceed
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perkins and Catalyst is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Perkins Small Cap 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 Perkins Small 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 Perkins Small Cap 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 Perkins Small i.e., Perkins Small and Catalyst Exceed go up and down completely randomly.
Pair Corralation between Perkins Small and Catalyst Exceed
Assuming the 90 days horizon Perkins Small is expected to generate 1.18 times less return on investment than Catalyst Exceed. In addition to that, Perkins Small is 1.32 times more volatile than Catalyst Exceed Defined. It trades about 0.03 of its total potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.05 per unit of volatility. If you would invest 1,188 in Catalyst Exceed Defined on May 29, 2025 and sell it today you would earn a total of 87.00 from holding Catalyst Exceed Defined or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Perkins Small Cap vs. Catalyst Exceed Defined
Performance |
| Timeline |
| Perkins Small Cap |
| Catalyst Exceed Defined |
Perkins Small and Catalyst Exceed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perkins Small and Catalyst Exceed
The main advantage of trading using opposite Perkins Small and Catalyst Exceed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perkins Small 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.| Perkins Small vs. Janus Overseas Fund | Perkins Small vs. Janus Balanced Fund | Perkins Small vs. Perkins Mid Cap | Perkins Small vs. Janus Enterprise Fund |
| Catalyst Exceed vs. Great West Loomis Sayles | Catalyst Exceed vs. Goldman Sachs Small | Catalyst Exceed vs. Perkins Small Cap | Catalyst Exceed vs. Queens Road Small |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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