Correlation Between GEN Restaurant and Kaltura
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant 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 GEN Restaurant and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEN Restaurant Group, and Kaltura, you can compare the effects of market volatilities on GEN Restaurant 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 GEN Restaurant with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Kaltura.
Diversification Opportunities for GEN Restaurant and Kaltura
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GEN and Kaltura is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and GEN Restaurant 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 GEN Restaurant 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 GEN Restaurant i.e., GEN Restaurant and Kaltura go up and down completely randomly.
Pair Corralation between GEN Restaurant and Kaltura
Given the investment horizon of 90 days GEN Restaurant Group, is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, GEN Restaurant Group, is 1.1 times less risky than Kaltura. The stock trades about -0.07 of its potential returns per unit of risk. The Kaltura is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 131.00 in Kaltura on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Kaltura or generate 65.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Kaltura
Performance |
| Timeline |
| GEN Restaurant Group, |
| Kaltura |
GEN Restaurant and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Kaltura
The main advantage of trading using opposite GEN Restaurant and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant 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.| GEN Restaurant vs. Cebu Air ADR | GEN Restaurant vs. ArcelorMittal SA ADR | GEN Restaurant vs. Grupo Simec SAB | GEN Restaurant vs. Corporacion America Airports |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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