Correlation Between Katapult Holdings and Indie Semiconductor
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and Indie Semiconductor 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 Indie Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katapult Holdings and Indie Semiconductor Warrant, you can compare the effects of market volatilities on Katapult Holdings and Indie Semiconductor 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 Indie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and Indie Semiconductor.
Diversification Opportunities for Katapult Holdings and Indie Semiconductor
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Katapult and Indie is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings and Indie Semiconductor Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indie Semiconductor 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 Indie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indie Semiconductor has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and Indie Semiconductor go up and down completely randomly.
Pair Corralation between Katapult Holdings and Indie Semiconductor
If you would invest 215.00 in Indie Semiconductor Warrant on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Indie Semiconductor Warrant or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Katapult Holdings vs. Indie Semiconductor Warrant
Performance |
| Timeline |
| Katapult Holdings |
| Indie Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Katapult Holdings and Indie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katapult Holdings and Indie Semiconductor
The main advantage of trading using opposite Katapult Holdings and Indie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, Indie Semiconductor 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 Indie Semiconductor will offset losses from the drop in Indie Semiconductor's long position.| Katapult Holdings vs. GigaCloud Technology Class | Katapult Holdings vs. Telos Corp | Katapult Holdings vs. Cemtrex | Katapult Holdings vs. authID Inc |
| Indie Semiconductor vs. Nuvve Holding Corp | Indie Semiconductor vs. EVgo Equity Warrants | Indie Semiconductor vs. Paysafe Ltd Wt | Indie Semiconductor vs. Microvast Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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