Correlation Between Rock Tech and Catalyst Metals
Can any of the company-specific risk be diversified away by investing in both Rock Tech and Catalyst Metals 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 Rock Tech and Catalyst Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rock Tech Lithium and Catalyst Metals Limited, you can compare the effects of market volatilities on Rock Tech and Catalyst Metals 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 Rock Tech with a short position of Catalyst Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rock Tech and Catalyst Metals.
Diversification Opportunities for Rock Tech and Catalyst Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rock and Catalyst is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rock Tech Lithium and Catalyst Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Metals and Rock Tech 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 Rock Tech Lithium are associated (or correlated) with Catalyst Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Metals has no effect on the direction of Rock Tech i.e., Rock Tech and Catalyst Metals go up and down completely randomly.
Pair Corralation between Rock Tech and Catalyst Metals
If you would invest (100.00) in Rock Tech Lithium on September 7, 2025 and sell it today you would earn a total of 100.00 from holding Rock Tech Lithium or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rock Tech Lithium vs. Catalyst Metals Limited
Performance |
| Timeline |
| Rock Tech Lithium |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Catalyst Metals |
Rock Tech and Catalyst Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rock Tech and Catalyst Metals
The main advantage of trading using opposite Rock Tech and Catalyst Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rock Tech position performs unexpectedly, Catalyst Metals 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 Metals will offset losses from the drop in Catalyst Metals' long position.| Rock Tech vs. Asure Software | Rock Tech vs. Journey Medical Corp | Rock Tech vs. Juma Technology Corp | Rock Tech vs. Profound Medical Corp |
| Catalyst Metals vs. NVIDIA | Catalyst Metals vs. Apple Inc | Catalyst Metals vs. Alphabet Inc Class C | Catalyst Metals vs. Microsoft |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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