Correlation Between Katipult Technology and Royal Canadian

Can any of the company-specific risk be diversified away by investing in both Katipult Technology and Royal Canadian 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 Katipult Technology and Royal Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Katipult Technology Corp and Royal Canadian Mint, you can compare the effects of market volatilities on Katipult Technology and Royal Canadian 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 Katipult Technology with a short position of Royal Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katipult Technology and Royal Canadian.

Diversification Opportunities for Katipult Technology and Royal Canadian

-0.39

Correlation Coefficient

Katipult Technology  Royal Canadian

Very good diversification

The 3 months correlation between Katipult and Royal is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Katipult Technology Corp and Royal Canadian Mint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Canadian Mint and Katipult Technology 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 Katipult Technology Corp are associated (or correlated) with Royal Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Canadian Mint has no effect on the direction of Katipult Technology i.e., Katipult Technology and Royal Canadian go up and down completely randomly.

Pair Corralation between Katipult Technology and Royal Canadian

Assuming the 90 days trading horizon Katipult Technology Corp is expected to generate 17.76 times more return on investment than Royal Canadian. However, Katipult Technology is 17.76 times more volatile than Royal Canadian Mint. It trades about 0.05 of its potential returns per unit of risk. Royal Canadian Mint is currently generating about 0.15 per unit of risk. If you would invest  2.50  in Katipult Technology Corp on September 19, 2024 and sell it today you would lose (1.50) from holding Katipult Technology Corp or give up 60.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

Katipult Technology Corp  vs.  Royal Canadian Mint

Katipult Technology Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Katipult Technology Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Katipult Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Royal Canadian Mint

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Royal Canadian Mint are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Royal Canadian may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Katipult Technology and Royal Canadian

The main advantage of trading using opposite Katipult Technology and Royal Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katipult Technology position performs unexpectedly, Royal Canadian 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 Royal Canadian will offset losses from the drop in Royal Canadian's long position.

The idea behind Katipult Technology Corp and Royal Canadian Mint 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.