Correlation Between Katipult Technology and National Bank
Can any of the company-specific risk be diversified away by investing in both Katipult Technology and National Bank 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 National Bank 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 National Bank of, you can compare the effects of market volatilities on Katipult Technology and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katipult Technology and National Bank.
Diversification Opportunities for Katipult Technology and National Bank
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Katipult and National is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Katipult Technology Corp and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Katipult Technology i.e., Katipult Technology and National Bank go up and down completely randomly.
Pair Corralation between Katipult Technology and National Bank
Assuming the 90 days trading horizon Katipult Technology Corp is expected to generate 41.27 times more return on investment than National Bank. However, Katipult Technology is 41.27 times more volatile than National Bank of. It trades about 0.04 of its potential returns per unit of risk. National Bank of is currently generating about 0.12 per unit of risk. If you would invest 3.50 in Katipult Technology Corp on August 29, 2024 and sell it today you would lose (2.00) from holding Katipult Technology Corp or give up 57.14% 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. National Bank of
Performance |
| Timeline |
| Katipult Technology Corp |
| National Bank |
Katipult Technology and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katipult Technology and National Bank
The main advantage of trading using opposite Katipult Technology and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katipult Technology position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank'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 |
| National Bank vs. National Bank of | National Bank vs. National Bank of | National Bank vs. National Bank of | National Bank vs. Bank of Montreal |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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