Correlation Between ECD Automotive and Kaltura
Can any of the company-specific risk be diversified away by investing in both ECD Automotive 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 ECD Automotive and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECD Automotive Design and Kaltura, you can compare the effects of market volatilities on ECD Automotive 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 ECD Automotive with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECD Automotive and Kaltura.
Diversification Opportunities for ECD Automotive and Kaltura
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ECD and Kaltura is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ECD Automotive Design and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and ECD Automotive 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 ECD Automotive Design 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 ECD Automotive i.e., ECD Automotive and Kaltura go up and down completely randomly.
Pair Corralation between ECD Automotive and Kaltura
Assuming the 90 days horizon ECD Automotive Design is expected to generate 7.97 times more return on investment than Kaltura. However, ECD Automotive is 7.97 times more volatile than Kaltura. It trades about 0.16 of its potential returns per unit of risk. Kaltura is currently generating about -0.07 per unit of risk. If you would invest 2.49 in ECD Automotive Design on November 27, 2024 and sell it today you would lose (0.09) from holding ECD Automotive Design or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
ECD Automotive Design vs. Kaltura
Performance |
| Timeline |
| ECD Automotive Design |
| Kaltura |
ECD Automotive and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECD Automotive and Kaltura
The main advantage of trading using opposite ECD Automotive and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECD Automotive 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.| ECD Automotive vs. Falcon Metals Limited | ECD Automotive vs. Inflection Point Acquisition | ECD Automotive vs. Zhihu Inc ADR | ECD Automotive vs. Griffon |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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