Correlation Between European Wax and Kaltura
Can any of the company-specific risk be diversified away by investing in both European Wax 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 European Wax and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between European Wax Center and Kaltura, you can compare the effects of market volatilities on European Wax 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 European Wax with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Wax and Kaltura.
Diversification Opportunities for European Wax and Kaltura
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between European and Kaltura is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding European Wax Center and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and European Wax 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 European Wax Center 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 European Wax i.e., European Wax and Kaltura go up and down completely randomly.
Pair Corralation between European Wax and Kaltura
Given the investment horizon of 90 days European Wax Center is expected to under-perform the Kaltura. In addition to that, European Wax is 1.18 times more volatile than Kaltura. It trades about -0.09 of its total potential returns per unit of risk. Kaltura is currently generating about 0.5 per unit of volatility. If you would invest 127.00 in Kaltura on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Kaltura or generate 74.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
European Wax Center vs. Kaltura
Performance |
| Timeline |
| European Wax Center |
| Kaltura |
European Wax and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Wax and Kaltura
The main advantage of trading using opposite European Wax and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Wax 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.| European Wax vs. Edgewell Personal Care | European Wax vs. Inter Parfums | European Wax vs. Henkel AG Co | European Wax vs. Mannatech Incorporated |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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