Correlation Between Investec Emerging and Catalyst Insider
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Catalyst Insider 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 Investec Emerging and Catalyst Insider into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Catalyst Insider Buying, you can compare the effects of market volatilities on Investec Emerging and Catalyst Insider 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 Investec Emerging with a short position of Catalyst Insider. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Catalyst Insider.
Diversification Opportunities for Investec Emerging and Catalyst Insider
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Investec and Catalyst is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Catalyst Insider Buying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Insider Buying and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Catalyst Insider. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Insider Buying has no effect on the direction of Investec Emerging i.e., Investec Emerging and Catalyst Insider go up and down completely randomly.
Pair Corralation between Investec Emerging and Catalyst Insider
Assuming the 90 days horizon Investec Emerging is expected to generate 1.1 times less return on investment than Catalyst Insider. But when comparing it to its historical volatility, Investec Emerging Markets is 1.28 times less risky than Catalyst Insider. It trades about 0.22 of its potential returns per unit of risk. Catalyst Insider Buying is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,235 in Catalyst Insider Buying on May 28, 2025 and sell it today you would earn a total of 269.00 from holding Catalyst Insider Buying or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Catalyst Insider Buying
Performance |
| Timeline |
| Investec Emerging Markets |
| Catalyst Insider Buying |
Investec Emerging and Catalyst Insider Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Catalyst Insider
The main advantage of trading using opposite Investec Emerging and Catalyst Insider positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Catalyst Insider 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 Insider will offset losses from the drop in Catalyst Insider's long position.| Investec Emerging vs. Icon Natural Resources | Investec Emerging vs. Jennison Natural Resources | Investec Emerging vs. Gmo Resources | Investec Emerging vs. Invesco Energy Fund |
| Catalyst Insider vs. Doubleline Emerging Markets | Catalyst Insider vs. Prudential Emerging Markets | Catalyst Insider vs. Investec Emerging Markets | Catalyst Insider vs. Saat Market Growth |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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