Correlation Between Adyen NV and Kaltura
Can any of the company-specific risk be diversified away by investing in both Adyen NV 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 Adyen NV and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adyen NV and Kaltura, you can compare the effects of market volatilities on Adyen NV 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 Adyen NV with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adyen NV and Kaltura.
Diversification Opportunities for Adyen NV and Kaltura
Very good diversification
The 3 months correlation between Adyen and Kaltura is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Adyen NV and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Adyen NV 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 Adyen NV 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 Adyen NV i.e., Adyen NV and Kaltura go up and down completely randomly.
Pair Corralation between Adyen NV and Kaltura
Assuming the 90 days horizon Adyen NV is expected to generate 1.1 times less return on investment than Kaltura. But when comparing it to its historical volatility, Adyen NV is 1.58 times less risky than Kaltura. It trades about 0.06 of its potential returns per unit of risk. Kaltura is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Kaltura on September 14, 2024 and sell it today you would earn a total of 46.00 from holding Kaltura or generate 25.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Adyen NV vs. Kaltura
Performance |
| Timeline |
| Adyen NV |
| Kaltura |
Adyen NV and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adyen NV and Kaltura
The main advantage of trading using opposite Adyen NV and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adyen NV 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.| Adyen NV vs. Confluent | Adyen NV vs. Kinsale Capital Group | Adyen NV vs. DigitalOcean Holdings | Adyen NV vs. Walker Dunlop |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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