Correlation Between Katapult Holdings and Data Storage
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and Data Storage 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 Data Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katapult Holdings Equity and Data Storage, you can compare the effects of market volatilities on Katapult Holdings and Data Storage 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 Data Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and Data Storage.
Diversification Opportunities for Katapult Holdings and Data Storage
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Katapult and Data is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings Equity and Data Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Storage 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 Equity are associated (or correlated) with Data Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Storage has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and Data Storage go up and down completely randomly.
Pair Corralation between Katapult Holdings and Data Storage
Assuming the 90 days horizon Katapult Holdings Equity is expected to under-perform the Data Storage. But the stock apears to be less risky and, when comparing its historical volatility, Katapult Holdings Equity is 1.37 times less risky than Data Storage. The stock trades about -0.08 of its potential returns per unit of risk. The Data Storage is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Data Storage on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Data Storage or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Katapult Holdings Equity vs. Data Storage
Performance |
| Timeline |
| Katapult Holdings Equity |
| Data Storage |
Katapult Holdings and Data Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katapult Holdings and Data Storage
The main advantage of trading using opposite Katapult Holdings and Data Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, Data Storage 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 Data Storage will offset losses from the drop in Data Storage's long position.| Katapult Holdings vs. AvePoint | Katapult Holdings vs. Katapult Holdings | Katapult Holdings vs. WM Technology |
| Data Storage vs. Data Storage Corp | Data Storage vs. Digital Brands Group | Data Storage vs. Katapult Holdings Equity |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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