Correlation Between Lilium Equity and Katapult Holdings
Can any of the company-specific risk be diversified away by investing in both Lilium Equity and Katapult Holdings 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 Lilium Equity and Katapult Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lilium Equity Warrants and Katapult Holdings Equity, you can compare the effects of market volatilities on Lilium Equity and Katapult Holdings 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 Lilium Equity with a short position of Katapult Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and Katapult Holdings.
Diversification Opportunities for Lilium Equity and Katapult Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lilium and Katapult is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lilium Equity Warrants and Katapult Holdings Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katapult Holdings Equity and Lilium Equity 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 Lilium Equity Warrants are associated (or correlated) with Katapult Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katapult Holdings Equity has no effect on the direction of Lilium Equity i.e., Lilium Equity and Katapult Holdings go up and down completely randomly.
Pair Corralation between Lilium Equity and Katapult Holdings
If you would invest 1.13 in Katapult Holdings Equity on November 9, 2024 and sell it today you would earn a total of 0.12 from holding Katapult Holdings Equity or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lilium Equity Warrants vs. Katapult Holdings Equity
Performance |
| Timeline |
| Lilium Equity Warrants |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Katapult Holdings Equity |
Lilium Equity and Katapult Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium Equity and Katapult Holdings
The main advantage of trading using opposite Lilium Equity and Katapult Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium Equity position performs unexpectedly, Katapult Holdings 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 Katapult Holdings will offset losses from the drop in Katapult Holdings' long position.| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Archer Aviation WT | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc |
| Katapult Holdings vs. AvePoint | Katapult Holdings vs. Katapult Holdings | Katapult Holdings vs. WM Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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