Correlation Between Global E and Kaltura
Can any of the company-specific risk be diversified away by investing in both Global E 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 Global E and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Kaltura, you can compare the effects of market volatilities on Global E 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 Global E with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Kaltura.
Diversification Opportunities for Global E and Kaltura
Very poor diversification
The 3 months correlation between Global and Kaltura is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Global E 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 Global E Online 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 Global E i.e., Global E and Kaltura go up and down completely randomly.
Pair Corralation between Global E and Kaltura
Given the investment horizon of 90 days Global E is expected to generate 1.76 times less return on investment than Kaltura. But when comparing it to its historical volatility, Global E Online is 1.73 times less risky than Kaltura. It trades about 0.4 of its potential returns per unit of risk. Kaltura is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 132.00 in Kaltura on August 30, 2024 and sell it today you would earn a total of 84.00 from holding Kaltura or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Global E Online vs. Kaltura
Performance |
| Timeline |
| Global E Online |
| Kaltura |
Global E and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and Kaltura
The main advantage of trading using opposite Global E and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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