Correlation Between Small-cap Profund and Catalyst Exceed
Can any of the company-specific risk be diversified away by investing in both Small-cap Profund 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 Small-cap Profund and Catalyst Exceed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Profund Small Cap and Catalyst Exceed Defined, you can compare the effects of market volatilities on Small-cap Profund 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 Small-cap Profund with a short position of Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small-cap Profund and Catalyst Exceed.
Diversification Opportunities for Small-cap Profund and Catalyst Exceed
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Small-cap and Catalyst is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Profund 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 Small-cap Profund 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 Small Cap Profund 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 Small-cap Profund i.e., Small-cap Profund and Catalyst Exceed go up and down completely randomly.
Pair Corralation between Small-cap Profund and Catalyst Exceed
Assuming the 90 days horizon Small Cap Profund Small Cap is expected to generate 1.74 times more return on investment than Catalyst Exceed. However, Small-cap Profund is 1.74 times more volatile than Catalyst Exceed Defined. It trades about 0.2 of its potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.14 per unit of risk. If you would invest 10,424 in Small Cap Profund Small Cap on May 31, 2025 and sell it today you would earn a total of 1,525 from holding Small Cap Profund Small Cap or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Small Cap Profund Small Cap vs. Catalyst Exceed Defined
Performance |
| Timeline |
| Small Cap Profund |
| Catalyst Exceed Defined |
Small-cap Profund and Catalyst Exceed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small-cap Profund and Catalyst Exceed
The main advantage of trading using opposite Small-cap Profund and Catalyst Exceed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small-cap Profund 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.| Small-cap Profund vs. Aig Government Money | Small-cap Profund vs. Putnam Money Market | Small-cap Profund vs. Hsbc Treasury Money | Small-cap Profund vs. Tiaa Cref Life Money |
| Catalyst Exceed vs. Absolute Convertible Arbitrage | Catalyst Exceed vs. Calamos Dynamic Convertible | Catalyst Exceed vs. Putnam Convertible Securities | Catalyst Exceed vs. Advent Claymore Convertible |
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.
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