Correlation Between Katapult Holdings and Evertec
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and Evertec 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 Katapult Holdings and Evertec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katapult Holdings and Evertec, you can compare the effects of market volatilities on Katapult Holdings and Evertec 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 Katapult Holdings with a short position of Evertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and Evertec.
Diversification Opportunities for Katapult Holdings and Evertec
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Katapult and Evertec is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings and Evertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertec and Katapult Holdings 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 Katapult Holdings are associated (or correlated) with Evertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertec has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and Evertec go up and down completely randomly.
Pair Corralation between Katapult Holdings and Evertec
Given the investment horizon of 90 days Katapult Holdings is expected to under-perform the Evertec. In addition to that, Katapult Holdings is 3.36 times more volatile than Evertec. It trades about -0.01 of its total potential returns per unit of risk. Evertec is currently generating about 0.02 per unit of volatility. If you would invest 3,119 in Evertec on September 14, 2024 and sell it today you would earn a total of 376.00 from holding Evertec or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Katapult Holdings vs. Evertec
Performance |
| Timeline |
| Katapult Holdings |
| Evertec |
Katapult Holdings and Evertec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katapult Holdings and Evertec
The main advantage of trading using opposite Katapult Holdings and Evertec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, Evertec 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 Evertec will offset losses from the drop in Evertec's long position.| Katapult Holdings vs. Evertec | Katapult Holdings vs. Global Blue Group | Katapult Holdings vs. NetScout Systems | Katapult Holdings vs. CSG Systems International |
| Evertec vs. Couchbase | Evertec vs. i3 Verticals | Evertec vs. EverCommerce | Evertec vs. International Money Express |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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