Correlation Between Analog Devices and Kaltura
Can any of the company-specific risk be diversified away by investing in both Analog Devices and Kaltura 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 Analog Devices and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analog Devices and Kaltura, you can compare the effects of market volatilities on Analog Devices and Kaltura 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 Analog Devices with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and Kaltura.
Diversification Opportunities for Analog Devices and Kaltura
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Analog and Kaltura is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Analog Devices 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 Analog Devices are associated (or correlated) with Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Analog Devices i.e., Analog Devices and Kaltura go up and down completely randomly.
Pair Corralation between Analog Devices and Kaltura
Considering the 90-day investment horizon Analog Devices is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, Analog Devices is 2.43 times less risky than Kaltura. The stock trades about -0.08 of its potential returns per unit of risk. The Kaltura is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Kaltura on August 29, 2024 and sell it today you would earn a total of 81.00 from holding Kaltura or generate 59.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analog Devices vs. Kaltura
Performance |
| Timeline |
| Analog Devices |
| Kaltura |
Analog Devices and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and Kaltura
The main advantage of trading using opposite Analog Devices and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices position performs unexpectedly, Kaltura 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 Kaltura will offset losses from the drop in Kaltura's long position.| Analog Devices vs. ABIVAX Socit Anonyme | Analog Devices vs. Morningstar Unconstrained Allocation | Analog Devices vs. SPACE | Analog Devices vs. Knife River |
| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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