Correlation Between Katapult Holdings and SemiLEDS
Can any of the company-specific risk be diversified away by investing in both Katapult Holdings and SemiLEDS 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 Katapult Holdings and SemiLEDS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katapult Holdings and SemiLEDS, you can compare the effects of market volatilities on Katapult Holdings and SemiLEDS 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 Katapult Holdings with a short position of SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katapult Holdings and SemiLEDS.
Diversification Opportunities for Katapult Holdings and SemiLEDS
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Katapult and SemiLEDS is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Katapult Holdings and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Katapult Holdings 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 Katapult Holdings are associated (or correlated) with SemiLEDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SemiLEDS has no effect on the direction of Katapult Holdings i.e., Katapult Holdings and SemiLEDS go up and down completely randomly.
Pair Corralation between Katapult Holdings and SemiLEDS
Given the investment horizon of 90 days Katapult Holdings is expected to generate 1.2 times more return on investment than SemiLEDS. However, Katapult Holdings is 1.2 times more volatile than SemiLEDS. It trades about 0.17 of its potential returns per unit of risk. SemiLEDS is currently generating about -0.03 per unit of risk. If you would invest 731.00 in Katapult Holdings on April 25, 2025 and sell it today you would earn a total of 517.00 from holding Katapult Holdings or generate 70.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Katapult Holdings vs. SemiLEDS
Performance |
Timeline |
Katapult Holdings |
SemiLEDS |
Katapult Holdings and SemiLEDS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Katapult Holdings and SemiLEDS
The main advantage of trading using opposite Katapult Holdings and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katapult Holdings position performs unexpectedly, SemiLEDS 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 SemiLEDS will offset losses from the drop in SemiLEDS's long position.Katapult Holdings vs. Katapult Holdings Equity | Katapult Holdings vs. International Money Express | Katapult Holdings vs. Bakkt Holdings | Katapult Holdings vs. Kaltura |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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