Correlation Between Kaltura and Allegiant Travel
Can any of the company-specific risk be diversified away by investing in both Kaltura and Allegiant Travel 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 Allegiant Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Allegiant Travel, you can compare the effects of market volatilities on Kaltura and Allegiant Travel 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 Allegiant Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Allegiant Travel.
Diversification Opportunities for Kaltura and Allegiant Travel
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kaltura and Allegiant is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Allegiant Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Travel 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 Allegiant Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Travel has no effect on the direction of Kaltura i.e., Kaltura and Allegiant Travel go up and down completely randomly.
Pair Corralation between Kaltura and Allegiant Travel
Given the investment horizon of 90 days Kaltura is expected to generate 1.51 times more return on investment than Allegiant Travel. However, Kaltura is 1.51 times more volatile than Allegiant Travel. It trades about 0.12 of its potential returns per unit of risk. Allegiant Travel is currently generating about 0.15 per unit of risk. If you would invest 106.00 in Kaltura on December 4, 2024 and sell it today you would earn a total of 91.00 from holding Kaltura or generate 85.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Allegiant Travel
Performance |
| Timeline |
| Kaltura |
| Allegiant Travel |
Kaltura and Allegiant Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Allegiant Travel
The main advantage of trading using opposite Kaltura and Allegiant Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Allegiant Travel 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 Allegiant Travel will offset losses from the drop in Allegiant Travel's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Allegiant Travel vs. Azul SA | Allegiant Travel vs. Alaska Air Group | Allegiant Travel vs. International Consolidated Airlines | Allegiant Travel vs. Sun Country Airlines |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |