Correlation Between Catalyst Pharmaceuticals and Professional Holding
Can any of the company-specific risk be diversified away by investing in both Catalyst Pharmaceuticals and Professional Holding 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 Pharmaceuticals and Professional Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Pharmaceuticals and Professional Holding Corp, you can compare the effects of market volatilities on Catalyst Pharmaceuticals and Professional Holding 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 Pharmaceuticals with a short position of Professional Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Professional Holding.
Diversification Opportunities for Catalyst Pharmaceuticals and Professional Holding
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Professional is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals and Professional Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Professional Holding Corp and Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals are associated (or correlated) with Professional Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Professional Holding Corp has no effect on the direction of Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Professional Holding go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Professional Holding
If you would invest 2,044 in Catalyst Pharmaceuticals on September 14, 2024 and sell it today you would earn a total of 90.00 from holding Catalyst Pharmaceuticals or generate 4.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Catalyst Pharmaceuticals vs. Professional Holding Corp
Performance |
Timeline |
Catalyst Pharmaceuticals |
Professional Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catalyst Pharmaceuticals and Professional Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalyst Pharmaceuticals and Professional Holding
The main advantage of trading using opposite Catalyst Pharmaceuticals and Professional Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals position performs unexpectedly, Professional Holding 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 Professional Holding will offset losses from the drop in Professional Holding's long position.Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
Professional Holding vs. Tenaris SA ADR | Professional Holding vs. Transocean | Professional Holding vs. Integrated Drilling Equipment | Professional Holding vs. Sun Country Airlines |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |