Correlation Between Katapult Holdings and Nuvei Corp
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and Nuvei Corp 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 Nuvei Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katapult Holdings and Nuvei Corp, you can compare the effects of market volatilities on Katapult Holdings and Nuvei Corp 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 Nuvei Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and Nuvei Corp.
Diversification Opportunities for Katapult Holdings and Nuvei Corp
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Katapult and Nuvei is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings and Nuvei Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvei Corp 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 Nuvei Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvei Corp has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and Nuvei Corp go up and down completely randomly.
Pair Corralation between Katapult Holdings and Nuvei Corp
Given the investment horizon of 90 days Katapult Holdings is expected to under-perform the Nuvei Corp. In addition to that, Katapult Holdings is 21.8 times more volatile than Nuvei Corp. It trades about -0.1 of its total potential returns per unit of risk. Nuvei Corp is currently generating about 0.23 per unit of volatility. If you would invest 3,199 in Nuvei Corp on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Nuvei Corp or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Katapult Holdings vs. Nuvei Corp
Performance |
| Timeline |
| Katapult Holdings |
| Nuvei Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Katapult Holdings and Nuvei Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katapult Holdings and Nuvei Corp
The main advantage of trading using opposite Katapult Holdings and Nuvei Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, Nuvei Corp 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 Nuvei Corp will offset losses from the drop in Nuvei Corp's long position.| Katapult Holdings vs. Palo Alto Networks | Katapult Holdings vs. GigaCloud Technology Class | Katapult Holdings vs. Pagaya Technologies | Katapult Holdings vs. Telos Corp |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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