Correlation Between Katapult Holdings and Oshidori International
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and Oshidori International 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 Oshidori International 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 Oshidori International Holdings, you can compare the effects of market volatilities on Katapult Holdings and Oshidori International 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 Oshidori International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and Oshidori International.
Diversification Opportunities for Katapult Holdings and Oshidori International
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Katapult and Oshidori is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings Equity and Oshidori International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshidori International 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 Oshidori International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshidori International has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and Oshidori International go up and down completely randomly.
Pair Corralation between Katapult Holdings and Oshidori International
Assuming the 90 days horizon Katapult Holdings Equity is expected to under-perform the Oshidori International. But the stock apears to be less risky and, when comparing its historical volatility, Katapult Holdings Equity is 15.83 times less risky than Oshidori International. The stock trades about -0.04 of its potential returns per unit of risk. The Oshidori International Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Oshidori International Holdings on August 30, 2024 and sell it today you would earn a total of 0.93 from holding Oshidori International Holdings or generate 1328.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Katapult Holdings Equity vs. Oshidori International Holding
Performance |
| Timeline |
| Katapult Holdings Equity |
| Oshidori International |
Katapult Holdings and Oshidori International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katapult Holdings and Oshidori International
The main advantage of trading using opposite Katapult Holdings and Oshidori International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, Oshidori International 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 Oshidori International will offset losses from the drop in Oshidori International's long position.| Katapult Holdings vs. AvePoint | Katapult Holdings vs. Katapult Holdings | Katapult Holdings vs. WM Technology |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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