Correlation Between Oshidori International and Katapult Holdings
Can any of the company-specific risk be diversified away by investing in both Oshidori International 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 Oshidori International and Katapult Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshidori International Holdings and Katapult Holdings Equity, you can compare the effects of market volatilities on Oshidori International 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 Oshidori International with a short position of Katapult Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and Katapult Holdings.
Diversification Opportunities for Oshidori International and Katapult Holdings
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oshidori and Katapult is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding 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 Oshidori International 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 Oshidori International Holdings 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 Oshidori International i.e., Oshidori International and Katapult Holdings go up and down completely randomly.
Pair Corralation between Oshidori International and Katapult Holdings
Assuming the 90 days horizon Oshidori International Holdings is expected to generate 12.27 times more return on investment than Katapult Holdings. However, Oshidori International is 12.27 times more volatile than Katapult Holdings Equity. It trades about 0.21 of its potential returns per unit of risk. Katapult Holdings Equity is currently generating about 0.07 per unit of risk. If you would invest 0.07 in Oshidori International Holdings on August 26, 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 |
Oshidori International Holding vs. Katapult Holdings Equity
Performance |
| Timeline |
| Oshidori International |
| Katapult Holdings Equity |
Oshidori International and Katapult Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshidori International and Katapult Holdings
The main advantage of trading using opposite Oshidori International and Katapult Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshidori International 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.| Oshidori International vs. PGE Corp | Oshidori International vs. Western Digital | Oshidori International vs. Cheniere Energy Partners | Oshidori International vs. Casio Computer Co |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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