Correlation Between Payoneer Global and Katapult Holdings
Can any of the company-specific risk be diversified away by investing in both Payoneer Global 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 Payoneer Global and Katapult Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payoneer Global and Katapult Holdings Equity, you can compare the effects of market volatilities on Payoneer Global 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 Payoneer Global with a short position of Katapult Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payoneer Global and Katapult Holdings.
Diversification Opportunities for Payoneer Global and Katapult Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Payoneer and Katapult is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global 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 Payoneer Global 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 Payoneer Global 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 Payoneer Global i.e., Payoneer Global and Katapult Holdings go up and down completely randomly.
Pair Corralation between Payoneer Global and Katapult Holdings
Given the investment horizon of 90 days Payoneer Global is expected to generate 0.34 times more return on investment than Katapult Holdings. However, Payoneer Global is 2.94 times less risky than Katapult Holdings. It trades about 0.25 of its potential returns per unit of risk. Katapult Holdings Equity is currently generating about -0.03 per unit of risk. If you would invest 855.00 in Payoneer Global on August 31, 2024 and sell it today you would earn a total of 236.00 from holding Payoneer Global or generate 27.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Payoneer Global vs. Katapult Holdings Equity
Performance |
| Timeline |
| Payoneer Global |
| Katapult Holdings Equity |
Payoneer Global and Katapult Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payoneer Global and Katapult Holdings
The main advantage of trading using opposite Payoneer Global and Katapult Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payoneer Global 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.| Payoneer Global vs. SentinelOne | Payoneer Global vs. CyberArk Software | Payoneer Global vs. MongoDB | Payoneer Global vs. Appian Corp |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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