Correlation Between Catalystmap Global and Catalyst Enhanced
Can any of the company-specific risk be diversified away by investing in both Catalystmap Global and Catalyst Enhanced 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 Catalystmap Global and Catalyst Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystmap Global Balanced and Catalyst Enhanced Income, you can compare the effects of market volatilities on Catalystmap Global and Catalyst Enhanced 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 Catalystmap Global with a short position of Catalyst Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalystmap Global and Catalyst Enhanced.
Diversification Opportunities for Catalystmap Global and Catalyst Enhanced
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalystmap and Catalyst is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmap Global Balanced and Catalyst Enhanced Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Enhanced Income and Catalystmap Global 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 Catalystmap Global Balanced are associated (or correlated) with Catalyst Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Enhanced Income has no effect on the direction of Catalystmap Global i.e., Catalystmap Global and Catalyst Enhanced go up and down completely randomly.
Pair Corralation between Catalystmap Global and Catalyst Enhanced
Assuming the 90 days horizon Catalystmap Global Balanced is expected to generate 0.56 times more return on investment than Catalyst Enhanced. However, Catalystmap Global Balanced is 1.8 times less risky than Catalyst Enhanced. It trades about 0.03 of its potential returns per unit of risk. Catalyst Enhanced Income is currently generating about -0.34 per unit of risk. If you would invest 1,278 in Catalystmap Global Balanced on October 5, 2025 and sell it today you would earn a total of 2.00 from holding Catalystmap Global Balanced or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystmap Global Balanced vs. Catalyst Enhanced Income
Performance |
| Timeline |
| Catalystmap Global |
| Catalyst Enhanced Income |
Catalystmap Global and Catalyst Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalystmap Global and Catalyst Enhanced
The main advantage of trading using opposite Catalystmap Global and Catalyst Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalystmap Global position performs unexpectedly, Catalyst Enhanced 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 Enhanced will offset losses from the drop in Catalyst Enhanced's long position.The idea behind Catalystmap Global Balanced and Catalyst Enhanced Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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