Correlation Between Catalyst/map Global and Catalyst Mlp

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Can any of the company-specific risk be diversified away by investing in both Catalyst/map Global and Catalyst Mlp 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 Catalyst/map Global and Catalyst Mlp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystmap Global Equity and Catalyst Mlp Infrastructure, you can compare the effects of market volatilities on Catalyst/map Global and Catalyst Mlp 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 Catalyst/map Global with a short position of Catalyst Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/map Global and Catalyst Mlp.

Diversification Opportunities for Catalyst/map Global and Catalyst Mlp

CATALYST/MAPCatalystDiversified AwayCATALYST/MAPCatalystDiversified Away100%
-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between CATALYST/MAP and Catalyst is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmap Global Equity and Catalyst Mlp Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Mlp Infrast and Catalyst/map 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 Equity are associated (or correlated) with Catalyst Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Mlp Infrast has no effect on the direction of Catalyst/map Global i.e., Catalyst/map Global and Catalyst Mlp go up and down completely randomly.

Pair Corralation between Catalyst/map Global and Catalyst Mlp

Assuming the 90 days horizon Catalyst/map Global is expected to generate 3.52 times less return on investment than Catalyst Mlp. But when comparing it to its historical volatility, Catalystmap Global Equity is 1.69 times less risky than Catalyst Mlp. It trades about 0.05 of its potential returns per unit of risk. Catalyst Mlp Infrastructure is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,769  in Catalyst Mlp Infrastructure on October 31, 2024 and sell it today you would earn a total of  1,208  from holding Catalyst Mlp Infrastructure or generate 68.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.81%
ValuesDaily Returns

Catalystmap Global Equity  vs.  Catalyst Mlp Infrastructure

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-505101520
JavaScript chart by amCharts 3.21.15CAXAX MLXCX
       Timeline  
Catalystmap Global Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Catalystmap Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Catalyst/map Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan16.81717.217.417.617.81818.218.4
Catalyst Mlp Infrast 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Mlp Infrastructure are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Catalyst Mlp showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan262728293031

Catalyst/map Global and Catalyst Mlp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.37-1.03-0.69-0.35-0.05140.140.480.821.161.5 0.10.20.30.40.50.6
JavaScript chart by amCharts 3.21.15CAXAX MLXCX
       Returns  

Pair Trading with Catalyst/map Global and Catalyst Mlp

The main advantage of trading using opposite Catalyst/map Global and Catalyst Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/map Global position performs unexpectedly, Catalyst Mlp 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 Mlp will offset losses from the drop in Catalyst Mlp's long position.
The idea behind Catalystmap Global Equity and Catalyst Mlp Infrastructure 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.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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