Correlation Between Amgen and Kaltura
Can any of the company-specific risk be diversified away by investing in both Amgen 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 Amgen and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Kaltura, you can compare the effects of market volatilities on Amgen 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 Amgen with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Kaltura.
Diversification Opportunities for Amgen and Kaltura
Pay attention - limited upside
The 3 months correlation between Amgen and Kaltura is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Amgen 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 Amgen Inc 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 Amgen i.e., Amgen and Kaltura go up and down completely randomly.
Pair Corralation between Amgen and Kaltura
Given the investment horizon of 90 days Amgen is expected to generate 3.76 times less return on investment than Kaltura. But when comparing it to its historical volatility, Amgen Inc is 2.52 times less risky than Kaltura. It trades about 0.02 of its potential returns per unit of risk. Kaltura is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 184.00 in Kaltura on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Kaltura or generate 20.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Kaltura
Performance |
| Timeline |
| Amgen Inc |
| Kaltura |
Amgen and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Kaltura
The main advantage of trading using opposite Amgen and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen 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.The idea behind Amgen Inc and Kaltura 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.| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |