Correlation Between Kaltura and Afya
Can any of the company-specific risk be diversified away by investing in both Kaltura and Afya 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 Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Afya, you can compare the effects of market volatilities on Kaltura and Afya 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 Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Afya.
Diversification Opportunities for Kaltura and Afya
Average diversification
The 3 months correlation between Kaltura and Afya is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya 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 Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Kaltura i.e., Kaltura and Afya go up and down completely randomly.
Pair Corralation between Kaltura and Afya
Given the investment horizon of 90 days Kaltura is expected to generate 2.59 times more return on investment than Afya. However, Kaltura is 2.59 times more volatile than Afya. It trades about 0.46 of its potential returns per unit of risk. Afya is currently generating about -0.12 per unit of risk. If you would invest 134.00 in Kaltura on September 4, 2024 and sell it today you would earn a total of 91.00 from holding Kaltura or generate 67.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Afya
Performance |
| Timeline |
| Kaltura |
| Afya |
Kaltura and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Afya
The main advantage of trading using opposite Kaltura and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Kaltura vs. HeartCore Enterprises | Kaltura vs. Beamr Imaging Ltd | Kaltura vs. Trust Stamp | Kaltura vs. CXApp Inc |
| Afya vs. Laureate Education | Afya vs. Lincoln Educational Services | Afya vs. Adtalem Global Education | Afya vs. Strategic Education |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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