Correlation Between Mutual Of and Catalyst/smh High
Can any of the company-specific risk be diversified away by investing in both Mutual Of and Catalyst/smh High 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 Mutual Of and Catalyst/smh High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Catalystsmh High Income, you can compare the effects of market volatilities on Mutual Of and Catalyst/smh High 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 Mutual Of with a short position of Catalyst/smh High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Catalyst/smh High.
Diversification Opportunities for Mutual Of and Catalyst/smh High
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mutual and Catalyst/smh is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and Catalystsmh High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh High Income and Mutual Of 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 Mutual Of America are associated (or correlated) with Catalyst/smh High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh High Income has no effect on the direction of Mutual Of i.e., Mutual Of and Catalyst/smh High go up and down completely randomly.
Pair Corralation between Mutual Of and Catalyst/smh High
Assuming the 90 days horizon Mutual Of is expected to generate 1.56 times less return on investment than Catalyst/smh High. In addition to that, Mutual Of is 1.02 times more volatile than Catalystsmh High Income. It trades about 0.12 of its total potential returns per unit of risk. Catalystsmh High Income is currently generating about 0.19 per unit of volatility. If you would invest 387.00 in Catalystsmh High Income on September 4, 2025 and sell it today you would earn a total of 21.00 from holding Catalystsmh High Income or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. Catalystsmh High Income
Performance |
| Timeline |
| Mutual Of America |
| Catalystsmh High Income |
Mutual Of and Catalyst/smh High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Catalyst/smh High
The main advantage of trading using opposite Mutual Of and Catalyst/smh High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, Catalyst/smh High 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/smh High will offset losses from the drop in Catalyst/smh High's long position.| Mutual Of vs. Mutual Of America | Mutual Of vs. Mutual Of America | Mutual Of vs. Mutual Of America | Mutual Of vs. Mutual Of America |
| Catalyst/smh High vs. Praxis Genesis Growth | Catalyst/smh High vs. Stringer Growth Fund | Catalyst/smh High vs. Growth Allocation Fund | Catalyst/smh High vs. Eip Growth And |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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