Correlation Between Red Cat and 90331HPL1
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By analyzing existing cross correlation between Red Cat Holdings and US BANK NATIONAL, you can compare the effects of market volatilities on Red Cat and 90331HPL1 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 Red Cat with a short position of 90331HPL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and 90331HPL1.
Diversification Opportunities for Red Cat and 90331HPL1
Average diversification
The 3 months correlation between Red and 90331HPL1 is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and US BANK NATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US BANK NATIONAL and Red Cat 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 Red Cat Holdings are associated (or correlated) with 90331HPL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US BANK NATIONAL has no effect on the direction of Red Cat i.e., Red Cat and 90331HPL1 go up and down completely randomly.
Pair Corralation between Red Cat and 90331HPL1
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 15.14 times more return on investment than 90331HPL1. However, Red Cat is 15.14 times more volatile than US BANK NATIONAL. It trades about 0.21 of its potential returns per unit of risk. US BANK NATIONAL is currently generating about -0.02 per unit of risk. If you would invest 73.00 in Red Cat Holdings on August 27, 2024 and sell it today you would earn a total of 824.00 from holding Red Cat Holdings or generate 1128.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 67.02% |
| Values | Daily Returns |
Red Cat Holdings vs. US BANK NATIONAL
Performance |
| Timeline |
| Red Cat Holdings |
| US BANK NATIONAL |
Red Cat and 90331HPL1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and 90331HPL1
The main advantage of trading using opposite Red Cat and 90331HPL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, 90331HPL1 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 90331HPL1 will offset losses from the drop in 90331HPL1's long position.| Red Cat vs. Plexus Corp | Red Cat vs. Benchmark Electronics | Red Cat vs. Jabil Circuit | Red Cat vs. Sanmina |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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