Correlation Between CAVA Group, and Kaltura
Can any of the company-specific risk be diversified away by investing in both CAVA Group, 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 CAVA Group, and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Kaltura, you can compare the effects of market volatilities on CAVA Group, 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 CAVA Group, with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Kaltura.
Diversification Opportunities for CAVA Group, and Kaltura
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CAVA and Kaltura is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and CAVA Group, 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 CAVA Group, 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 CAVA Group, i.e., CAVA Group, and Kaltura go up and down completely randomly.
Pair Corralation between CAVA Group, and Kaltura
Given the investment horizon of 90 days CAVA Group, is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, CAVA Group, is 1.11 times less risky than Kaltura. The stock trades about -0.22 of its potential returns per unit of risk. The Kaltura is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Kaltura on November 28, 2024 and sell it today you would lose (8.00) from holding Kaltura or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAVA Group, vs. Kaltura
Performance |
| Timeline |
| CAVA Group, |
| Kaltura |
CAVA Group, and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Kaltura
The main advantage of trading using opposite CAVA Group, and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, 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.| CAVA Group, vs. China Aircraft Leasing | CAVA Group, vs. Quaker Chemical | CAVA Group, vs. Lend Lease Group | CAVA Group, vs. Mitsubishi UFJ Lease |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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