Correlation Between Katipult Technology and TGS Esports

Can any of the company-specific risk be diversified away by investing in both Katipult Technology and TGS Esports 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 TGS Esports 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 TGS Esports, you can compare the effects of market volatilities on Katipult Technology and TGS Esports 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 TGS Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katipult Technology and TGS Esports.

Diversification Opportunities for Katipult Technology and TGS Esports

0.0

Correlation Coefficient

Katipult Technology  TGS Esports

Pay attention - limited upside

The 3 months correlation between Katipult and TGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Katipult Technology Corp and TGS Esports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS Esports 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 TGS Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS Esports has no effect on the direction of Katipult Technology i.e., Katipult Technology and TGS Esports go up and down completely randomly.

Pair Corralation between Katipult Technology and TGS Esports

If you would invest  1.00  in Katipult Technology Corp on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Katipult Technology Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Katipult Technology Corp  vs.  TGS Esports

Katipult Technology Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Katipult Technology Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Katipult Technology showed solid returns over the last few months and may actually be approaching a breakup point.

TGS Esports

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TGS Esports has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, TGS Esports is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Katipult Technology and TGS Esports

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

The idea behind Katipult Technology Corp and TGS Esports 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.