Correlation Between Kaltura and Analog Devices
Can any of the company-specific risk be diversified away by investing in both Kaltura and Analog Devices 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 Kaltura and Analog Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Analog Devices, you can compare the effects of market volatilities on Kaltura and Analog Devices 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 Kaltura with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Analog Devices.
Diversification Opportunities for Kaltura and Analog Devices
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kaltura and Analog is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and Kaltura 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 Kaltura are associated (or correlated) with Analog Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices has no effect on the direction of Kaltura i.e., Kaltura and Analog Devices go up and down completely randomly.
Pair Corralation between Kaltura and Analog Devices
Given the investment horizon of 90 days Kaltura is expected to generate 2.88 times more return on investment than Analog Devices. However, Kaltura is 2.88 times more volatile than Analog Devices. It trades about 0.5 of its potential returns per unit of risk. Analog Devices is currently generating about -0.05 per unit of risk. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Analog Devices
Performance |
| Timeline |
| Kaltura |
| Analog Devices |
Kaltura and Analog Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Analog Devices
The main advantage of trading using opposite Kaltura and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Analog Devices 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 Analog Devices will offset losses from the drop in Analog Devices' long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. GSI Technology | Analog Devices vs. MaxLinear | Analog Devices vs. Texas Instruments Incorporated |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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