Correlation Between Katapult Holdings and Snail,
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and Snail, 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 Snail, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katapult Holdings Equity and Snail, Class A, you can compare the effects of market volatilities on Katapult Holdings and Snail, 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 Snail,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and Snail,.
Diversification Opportunities for Katapult Holdings and Snail,
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Katapult and Snail, is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings Equity and Snail, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snail, Class A 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 Equity are associated (or correlated) with Snail,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snail, Class A has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and Snail, go up and down completely randomly.
Pair Corralation between Katapult Holdings and Snail,
Assuming the 90 days horizon Katapult Holdings is expected to generate 1.34 times less return on investment than Snail,. But when comparing it to its historical volatility, Katapult Holdings Equity is 1.03 times less risky than Snail,. It trades about 0.09 of its potential returns per unit of risk. Snail, Class A is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Snail, Class A on September 4, 2024 and sell it today you would earn a total of 56.00 from holding Snail, Class A or generate 64.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 92.19% |
Values | Daily Returns |
Katapult Holdings Equity vs. Snail, Class A
Performance |
Timeline |
Katapult Holdings Equity |
Snail, Class A |
Katapult Holdings and Snail, Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Katapult Holdings and Snail,
The main advantage of trading using opposite Katapult Holdings and Snail, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, Snail, 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 Snail, will offset losses from the drop in Snail,'s long position.Katapult Holdings vs. AvePoint | Katapult Holdings vs. Katapult Holdings | Katapult Holdings vs. WM Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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