Correlation Between Katapult Holdings and SharkNinja,

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

By analyzing existing cross correlation between Katapult Holdings and SharkNinja,, you can compare the effects of market volatilities on Katapult Holdings and SharkNinja, 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 Katapult Holdings with a short position of SharkNinja,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and SharkNinja,.

Diversification Opportunities for Katapult Holdings and SharkNinja,

0.65

Correlation Coefficient

Katapult Holdings  SharkNinja,

Poor diversification

The 3 months correlation between Katapult and SharkNinja, is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Katapult Holdings 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 Katapult Holdings are associated (or correlated) with SharkNinja,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SharkNinja, has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and SharkNinja, go up and down completely randomly.

Pair Corralation between Katapult Holdings and SharkNinja,

Given the investment horizon of 90 days Katapult Holdings is expected to under-perform the SharkNinja,. In addition to that, Katapult Holdings is 2.36 times more volatile than SharkNinja,. It trades about -0.02 of its total potential returns per unit of risk. SharkNinja, is currently generating about 0.12 per unit of volatility. If you would invest  4,664  in SharkNinja, on September 28, 2024 and sell it today you would earn a total of  4,983  from holding SharkNinja, or generate 106.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.63%
Values	Daily Returns

Katapult Holdings  vs.  SharkNinja,

Katapult Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Katapult Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SharkNinja,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SharkNinja, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Katapult Holdings and SharkNinja,

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

The idea behind Katapult Holdings and SharkNinja, 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.