Correlation Between Eic Value and Catalystmap Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Eic Value and Catalystmap Global 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 Eic Value and Catalystmap Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Catalystmap Global Balanced, you can compare the effects of market volatilities on Eic Value and Catalystmap Global 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 Eic Value with a short position of Catalystmap Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Catalystmap Global.

Diversification Opportunities for Eic Value and Catalystmap Global

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Eic and Catalystmap is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Catalystmap Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global and Eic Value 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 Eic Value Fund are associated (or correlated) with Catalystmap Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global has no effect on the direction of Eic Value i.e., Eic Value and Catalystmap Global go up and down completely randomly.

Pair Corralation between Eic Value and Catalystmap Global

Assuming the 90 days horizon Eic Value Fund is expected to under-perform the Catalystmap Global. In addition to that, Eic Value is 4.09 times more volatile than Catalystmap Global Balanced. It trades about -0.15 of its total potential returns per unit of risk. Catalystmap Global Balanced is currently generating about 0.02 per unit of volatility. If you would invest  1,123  in Catalystmap Global Balanced on October 26, 2024 and sell it today you would earn a total of  2.00  from holding Catalystmap Global Balanced or generate 0.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Eic Value Fund  vs.  Catalystmap Global Balanced

 Performance 
       Timeline  
Eic Value Fund 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Eic Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eic Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Catalystmap Global 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Catalystmap Global Balanced has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Catalystmap Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eic Value and Catalystmap Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eic Value and Catalystmap Global

The main advantage of trading using opposite Eic Value and Catalystmap Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Catalystmap Global 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 Catalystmap Global will offset losses from the drop in Catalystmap Global's long position.
The idea behind Eic Value Fund and Catalystmap Global Balanced 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
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
Bonds Directory
Find actively traded corporate debentures issued by US companies
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon