Correlation Between NVIDIA CDR and Katipult Technology

Can any of the company-specific risk be diversified away by investing in both NVIDIA CDR and Katipult Technology 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 NVIDIA CDR and Katipult Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NVIDIA CDR and Katipult Technology Corp, you can compare the effects of market volatilities on NVIDIA CDR and Katipult Technology 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 NVIDIA CDR with a short position of Katipult Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA CDR and Katipult Technology.

Diversification Opportunities for NVIDIA CDR and Katipult Technology

-0.36

Correlation Coefficient

NVIDIA CDR  Katipult Technology

Very good diversification

The 3 months correlation between NVIDIA and Katipult is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA CDR and Katipult Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katipult Technology Corp and NVIDIA CDR 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 NVIDIA CDR are associated (or correlated) with Katipult Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katipult Technology Corp has no effect on the direction of NVIDIA CDR i.e., NVIDIA CDR and Katipult Technology go up and down completely randomly.

Pair Corralation between NVIDIA CDR and Katipult Technology

If you would invest  2,792  in NVIDIA CDR on September 13, 2024 and sell it today you would earn a total of  422.00  from holding NVIDIA CDR or generate 15.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

NVIDIA CDR  vs.  Katipult Technology Corp

NVIDIA CDR

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NVIDIA CDR are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, NVIDIA CDR exhibited solid returns over the last few months and may actually be approaching a breakup point.

Katipult Technology Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Katipult Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Katipult Technology is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with NVIDIA CDR and Katipult Technology

The main advantage of trading using opposite NVIDIA CDR and Katipult Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA CDR position performs unexpectedly, Katipult Technology 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 Katipult Technology will offset losses from the drop in Katipult Technology's long position.

The idea behind NVIDIA CDR and Katipult Technology Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .