Correlation Between Katapult Holdings and TransUnion
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and TransUnion 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 TransUnion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katapult Holdings and TransUnion, you can compare the effects of market volatilities on Katapult Holdings and TransUnion 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 TransUnion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and TransUnion.
Diversification Opportunities for Katapult Holdings and TransUnion
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Katapult and TransUnion is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings and TransUnion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransUnion 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 TransUnion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransUnion has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and TransUnion go up and down completely randomly.
Pair Corralation between Katapult Holdings and TransUnion
Given the investment horizon of 90 days Katapult Holdings is expected to under-perform the TransUnion. In addition to that, Katapult Holdings is 2.97 times more volatile than TransUnion. It trades about -0.12 of its total potential returns per unit of risk. TransUnion is currently generating about 0.01 per unit of volatility. If you would invest 10,086 in TransUnion on September 6, 2024 and sell it today you would lose (14.00) from holding TransUnion or give up 0.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Katapult Holdings vs. TransUnion
Performance |
Timeline |
Katapult Holdings |
TransUnion |
Katapult Holdings and TransUnion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Katapult Holdings and TransUnion
The main advantage of trading using opposite Katapult Holdings and TransUnion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, TransUnion 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 TransUnion will offset losses from the drop in TransUnion's long position.Katapult Holdings vs. Evertec | Katapult Holdings vs. i3 Verticals | Katapult Holdings vs. Euronet Worldwide | Katapult Holdings vs. EverCommerce |
TransUnion vs. Exponent | TransUnion vs. Verisk Analytics | TransUnion vs. FTI Consulting | TransUnion vs. Forrester Research |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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