Correlation Between Katipult Technology and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Katipult Technology and Brookfield Infrastructure 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 Brookfield Infrastructure 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 Brookfield Infrastructure Corp, you can compare the effects of market volatilities on Katipult Technology and Brookfield Infrastructure 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 Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katipult Technology and Brookfield Infrastructure.
Diversification Opportunities for Katipult Technology and Brookfield Infrastructure
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Katipult and Brookfield is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Katipult Technology Corp and Brookfield Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure 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 Brookfield Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Infrastructure has no effect on the direction of Katipult Technology i.e., Katipult Technology and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Katipult Technology and Brookfield Infrastructure
Assuming the 90 days trading horizon Katipult Technology Corp is expected to generate 10.98 times more return on investment than Brookfield Infrastructure. However, Katipult Technology is 10.98 times more volatile than Brookfield Infrastructure Corp. It trades about 0.02 of its potential returns per unit of risk. Brookfield Infrastructure Corp is currently generating about 0.16 per unit of risk. If you would invest 3.50 in Katipult Technology Corp on September 3, 2024 and sell it today you would lose (2.50) from holding Katipult Technology Corp or give up 71.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Katipult Technology Corp vs. Brookfield Infrastructure Corp
Performance |
| Timeline |
| Katipult Technology Corp |
| Brookfield Infrastructure |
Katipult Technology and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katipult Technology and Brookfield Infrastructure
The main advantage of trading using opposite Katipult Technology and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katipult Technology position performs unexpectedly, Brookfield Infrastructure 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 Brookfield Infrastructure will offset losses from the drop in Brookfield Infrastructure's long position.| Katipult Technology vs. Enghouse Systems | Katipult Technology vs. Pulse Seismic | Katipult Technology vs. Harvest Global REIT | Katipult Technology vs. International Zeolite Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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