Correlation Between International Money and Katapult Holdings
Can any of the company-specific risk be diversified away by investing in both International Money 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 International Money and Katapult Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Money Express and Katapult Holdings Equity, you can compare the effects of market volatilities on International Money 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 International Money with a short position of Katapult Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Money and Katapult Holdings.
Diversification Opportunities for International Money and Katapult Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Katapult is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express 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 International Money 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 International Money Express 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 International Money i.e., International Money and Katapult Holdings go up and down completely randomly.
Pair Corralation between International Money and Katapult Holdings
Given the investment horizon of 90 days International Money Express is expected to under-perform the Katapult Holdings. But the stock apears to be less risky and, when comparing its historical volatility, International Money Express is 13.31 times less risky than Katapult Holdings. The stock trades about -0.25 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 | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
International Money Express vs. Katapult Holdings Equity
Performance |
| Timeline |
| International Money |
| Katapult Holdings Equity |
International Money and Katapult Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Money and Katapult Holdings
The main advantage of trading using opposite International Money and Katapult Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Money 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.| International Money vs. NetScout Systems | International Money vs. Consensus Cloud Solutions | International Money vs. CSG Systems International | International Money vs. EverCommerce |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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