Correlation Between Kaltura and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Kaltura and Agnico Eagle 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 Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Agnico Eagle Mines, you can compare the effects of market volatilities on Kaltura and Agnico Eagle 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 Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Agnico Eagle.
Diversification Opportunities for Kaltura and Agnico Eagle
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaltura and Agnico is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines 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 Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of Kaltura i.e., Kaltura and Agnico Eagle go up and down completely randomly.
Pair Corralation between Kaltura and Agnico Eagle
Given the investment horizon of 90 days Kaltura is expected to generate 2.27 times more return on investment than Agnico Eagle. However, Kaltura is 2.27 times more volatile than Agnico Eagle Mines. It trades about 0.47 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about -0.1 per unit of risk. If you would invest 131.00 in Kaltura on August 28, 2024 and sell it today you would earn a total of 92.00 from holding Kaltura or generate 70.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Agnico Eagle Mines
Performance |
| Timeline |
| Kaltura |
| Agnico Eagle Mines |
Kaltura and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Agnico Eagle
The main advantage of trading using opposite Kaltura and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Agnico Eagle 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 Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Agnico Eagle vs. Wheaton Precious Metals | Agnico Eagle vs. Newmont Goldcorp Corp | Agnico Eagle vs. Kinross Gold | Agnico Eagle vs. Gold Fields Ltd |
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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