Correlation Between Mogo and Katapult Holdings
Can any of the company-specific risk be diversified away by investing in both Mogo 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 Mogo and Katapult Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mogo Inc and Katapult Holdings Equity, you can compare the effects of market volatilities on Mogo 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 Mogo with a short position of Katapult Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mogo and Katapult Holdings.
Diversification Opportunities for Mogo and Katapult Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mogo and Katapult is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mogo Inc 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 Mogo 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 Mogo Inc 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 Mogo i.e., Mogo and Katapult Holdings go up and down completely randomly.
Pair Corralation between Mogo and Katapult Holdings
Given the investment horizon of 90 days Mogo is expected to generate 58.0 times less return on investment than Katapult Holdings. But when comparing it to its historical volatility, Mogo Inc is 16.55 times less risky than Katapult Holdings. It trades about 0.02 of its potential returns per unit of risk. Katapult Holdings Equity is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.09 in Katapult Holdings Equity on August 28, 2024 and sell it today you would lose (0.52) from holding Katapult Holdings Equity or give up 47.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.3% |
| Values | Daily Returns |
Mogo Inc vs. Katapult Holdings Equity
Performance |
| Timeline |
| Mogo Inc |
| Katapult Holdings Equity |
Mogo and Katapult Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mogo and Katapult Holdings
The main advantage of trading using opposite Mogo and Katapult Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mogo 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.| Mogo vs. Katapult Holdings Equity | Mogo vs. International Money Express | Mogo vs. Bakkt Holdings | Mogo vs. Kaltura |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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