Correlation Between Evertec and Katapult Holdings
Can any of the company-specific risk be diversified away by investing in both Evertec and Katapult Holdings 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 Evertec and Katapult Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertec and Katapult Holdings Equity, you can compare the effects of market volatilities on Evertec and Katapult Holdings 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 Evertec with a short position of Katapult Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertec and Katapult Holdings.
Diversification Opportunities for Evertec and Katapult Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evertec and Katapult is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Evertec and Katapult Holdings Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katapult Holdings Equity and Evertec 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 Evertec are associated (or correlated) with Katapult Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katapult Holdings Equity has no effect on the direction of Evertec i.e., Evertec and Katapult Holdings go up and down completely randomly.
Pair Corralation between Evertec and Katapult Holdings
Given the investment horizon of 90 days Evertec is expected to under-perform the Katapult Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Evertec is 14.68 times less risky than Katapult Holdings. The stock trades about -0.21 of its potential returns per unit of risk. The Katapult Holdings Equity is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.78 in Katapult Holdings Equity on November 4, 2024 and sell it today you would earn a total of 0.19 from holding Katapult Holdings Equity or generate 24.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Evertec vs. Katapult Holdings Equity
Performance |
| Timeline |
| Evertec |
| Katapult Holdings Equity |
Evertec and Katapult Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertec and Katapult Holdings
The main advantage of trading using opposite Evertec and Katapult Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertec position performs unexpectedly, Katapult Holdings 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 Katapult Holdings will offset losses from the drop in Katapult Holdings' long position.| Evertec vs. Consensus Cloud Solutions | Evertec vs. Global Blue Group | Evertec vs. EverCommerce | Evertec vs. CSG Systems International |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |