Correlation Between Highwood Asset and Katipult Technology
Can any of the company-specific risk be diversified away by investing in both Highwood Asset and Katipult Technology 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 Highwood Asset and Katipult Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highwood Asset Management and Katipult Technology Corp, you can compare the effects of market volatilities on Highwood Asset and Katipult Technology 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 Highwood Asset with a short position of Katipult Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highwood Asset and Katipult Technology.
Diversification Opportunities for Highwood Asset and Katipult Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Highwood and Katipult is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Highwood Asset Management and Katipult Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katipult Technology Corp and Highwood Asset 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 Highwood Asset Management are associated (or correlated) with Katipult Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katipult Technology Corp has no effect on the direction of Highwood Asset i.e., Highwood Asset and Katipult Technology go up and down completely randomly.
Pair Corralation between Highwood Asset and Katipult Technology
Assuming the 90 days horizon Highwood Asset is expected to generate 69.52 times less return on investment than Katipult Technology. But when comparing it to its historical volatility, Highwood Asset Management is 9.82 times less risky than Katipult Technology. It trades about 0.01 of its potential returns per unit of risk. Katipult Technology Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Katipult Technology Corp on November 2, 2024 and sell it today you would lose (0.50) from holding Katipult Technology Corp or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highwood Asset Management vs. Katipult Technology Corp
Performance |
| Timeline |
| Highwood Asset Management |
| Katipult Technology Corp |
Highwood Asset and Katipult Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highwood Asset and Katipult Technology
The main advantage of trading using opposite Highwood Asset and Katipult Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highwood Asset position performs unexpectedly, Katipult Technology 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 Katipult Technology will offset losses from the drop in Katipult Technology's long position.| Highwood Asset vs. CI Financial Corp | Highwood Asset vs. Air Canada | Highwood Asset vs. Laurentian Bank | Highwood Asset vs. Toronto Dominion Bank |
| Katipult Technology vs. Lite Access Technologies | Katipult Technology vs. Braille Energy Systems | Katipult Technology vs. Solar Alliance Energy | Katipult Technology vs. NEXE Innovations |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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