Correlation Between Catalystsmh Total and American Balanced
Can any of the company-specific risk be diversified away by investing in both Catalystsmh Total and American Balanced 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 Catalystsmh Total and American Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystsmh Total Return and American Balanced Fund, you can compare the effects of market volatilities on Catalystsmh Total and American Balanced 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 Catalystsmh Total with a short position of American Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalystsmh Total and American Balanced.
Diversification Opportunities for Catalystsmh Total and American Balanced
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Catalystsmh and American is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Catalystsmh Total Return and American Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Balanced and Catalystsmh Total 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 Catalystsmh Total Return are associated (or correlated) with American Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Balanced has no effect on the direction of Catalystsmh Total i.e., Catalystsmh Total and American Balanced go up and down completely randomly.
Pair Corralation between Catalystsmh Total and American Balanced
Assuming the 90 days horizon Catalystsmh Total Return is expected to generate 0.87 times more return on investment than American Balanced. However, Catalystsmh Total Return is 1.15 times less risky than American Balanced. It trades about 0.13 of its potential returns per unit of risk. American Balanced Fund is currently generating about 0.1 per unit of risk. If you would invest 402.00 in Catalystsmh Total Return on January 20, 2024 and sell it today you would earn a total of 60.00 from holding Catalystsmh Total Return or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Catalystsmh Total Return vs. American Balanced Fund
Performance |
| Timeline |
| Catalystsmh Total Return |
| American Balanced |
Catalystsmh Total and American Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalystsmh Total and American Balanced
The main advantage of trading using opposite Catalystsmh Total and American Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalystsmh Total position performs unexpectedly, American Balanced 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 American Balanced will offset losses from the drop in American Balanced's long position.| Catalystsmh Total vs. Catalystsmh High Income | Catalystsmh Total vs. Catalystsmh High Income | Catalystsmh Total vs. Catalyst Mlp Infrastructure | Catalystsmh Total vs. Catalystwarrington Strategic Program |
| American Balanced vs. Income Fund Of | American Balanced vs. New World Fund | American Balanced vs. American Mutual Fund | American Balanced vs. American Mutual Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |