Correlation Between Katipult Technology and MAG Silver
Can any of the company-specific risk be diversified away by investing in both Katipult Technology and MAG Silver 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 MAG Silver 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 MAG Silver Corp, you can compare the effects of market volatilities on Katipult Technology and MAG Silver 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 MAG Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katipult Technology and MAG Silver.
Diversification Opportunities for Katipult Technology and MAG Silver
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Katipult and MAG is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Katipult Technology Corp and MAG Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Silver Corp 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 MAG Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Silver Corp has no effect on the direction of Katipult Technology i.e., Katipult Technology and MAG Silver go up and down completely randomly.
Pair Corralation between Katipult Technology and MAG Silver
Assuming the 90 days trading horizon Katipult Technology Corp is expected to generate 8.05 times more return on investment than MAG Silver. However, Katipult Technology is 8.05 times more volatile than MAG Silver Corp. It trades about 0.08 of its potential returns per unit of risk. MAG Silver Corp is currently generating about -0.28 per unit of risk. If you would invest 1.50 in Katipult Technology Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Katipult Technology Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Katipult Technology Corp vs. MAG Silver Corp
Performance |
| Timeline |
| Katipult Technology Corp |
| MAG Silver Corp |
Katipult Technology and MAG Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katipult Technology and MAG Silver
The main advantage of trading using opposite Katipult Technology and MAG Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katipult Technology position performs unexpectedly, MAG Silver 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 MAG Silver will offset losses from the drop in MAG Silver's long position.| Katipult Technology vs. MAG Silver Corp | Katipult Technology vs. Ramp Metals | Katipult Technology vs. Quipt Home Medical | Katipult Technology vs. Perseus Mining |
| MAG Silver vs. First Majestic Silver | MAG Silver vs. Ivanhoe Energy | MAG Silver vs. Orezone Gold Corp | MAG Silver vs. Faraday Copper 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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