Correlation Between Chart Industries and Kaltura
Can any of the company-specific risk be diversified away by investing in both Chart Industries 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 Chart Industries and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chart Industries and Kaltura, you can compare the effects of market volatilities on Chart Industries 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 Chart Industries with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chart Industries and Kaltura.
Diversification Opportunities for Chart Industries and Kaltura
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chart and Kaltura is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Chart Industries 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 Chart Industries 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 Chart Industries i.e., Chart Industries and Kaltura go up and down completely randomly.
Pair Corralation between Chart Industries and Kaltura
Given the investment horizon of 90 days Chart Industries is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, Chart Industries is 2.22 times less risky than Kaltura. The stock trades about -0.28 of its potential returns per unit of risk. The Kaltura is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Kaltura on November 29, 2024 and sell it today you would lose (13.00) from holding Kaltura or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chart Industries vs. Kaltura
Performance |
| Timeline |
| Chart Industries |
| Kaltura |
Chart Industries and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chart Industries and Kaltura
The main advantage of trading using opposite Chart Industries and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chart Industries 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.| Chart Industries vs. Crane NXT Co | Chart Industries vs. Donaldson | Chart Industries vs. ITT Inc | Chart Industries vs. Franklin Electric Co |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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