Correlation Between Origin Emerging and Catalyst/cifc Floating

Can any of the company-specific risk be diversified away by investing in both Origin Emerging and Catalyst/cifc Floating 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 Origin Emerging and Catalyst/cifc Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Origin Emerging Markets and Catalystcifc Floating Rate, you can compare the effects of market volatilities on Origin Emerging and Catalyst/cifc Floating 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 Origin Emerging with a short position of Catalyst/cifc Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and Catalyst/cifc Floating.

Diversification Opportunities for Origin Emerging and Catalyst/cifc Floating

-0.5

Correlation Coefficient

Origin Emerging  Catalyst/cifc Floating

Very good diversification

The 3 months correlation between Origin and Catalyst/cifc is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and Catalystcifc Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/cifc Floating and Origin 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 Origin Emerging Markets are associated (or correlated) with Catalyst/cifc Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/cifc Floating has no effect on the direction of Origin Emerging i.e., Origin Emerging and Catalyst/cifc Floating go up and down completely randomly.

Pair Corralation between Origin Emerging and Catalyst/cifc Floating

Assuming the 90 days horizon Origin Emerging is expected to generate 28.9 times less return on investment than Catalyst/cifc Floating. But when comparing it to its historical volatility, Origin Emerging Markets is 17.41 times less risky than Catalyst/cifc Floating. It trades about 0.03 of its potential returns per unit of risk. Catalystcifc Floating Rate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  780.00  in Catalystcifc Floating Rate on October 23, 2024 and sell it today you would earn a total of  145.00  from holding Catalystcifc Floating Rate or generate 18.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.59%
Values	Daily Returns

Origin Emerging Markets  vs.  Catalystcifc Floating Rate

Origin Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Origin Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Origin Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Catalyst/cifc Floating

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystcifc Floating Rate are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Catalyst/cifc Floating is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Origin Emerging and Catalyst/cifc Floating

The main advantage of trading using opposite Origin Emerging and Catalyst/cifc Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging position performs unexpectedly, Catalyst/cifc Floating 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/cifc Floating will offset losses from the drop in Catalyst/cifc Floating's long position.

The idea behind Origin Emerging Markets and Catalystcifc Floating Rate 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.