Correlation Between Kaltura and American Lithium
Can any of the company-specific risk be diversified away by investing in both Kaltura and American Lithium 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 American Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and American Lithium Corp, you can compare the effects of market volatilities on Kaltura and American Lithium 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 American Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and American Lithium.
Diversification Opportunities for Kaltura and American Lithium
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaltura and American is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and American Lithium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Lithium Corp 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 American Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Lithium Corp has no effect on the direction of Kaltura i.e., Kaltura and American Lithium go up and down completely randomly.
Pair Corralation between Kaltura and American Lithium
Given the investment horizon of 90 days Kaltura is expected to generate 1.85 times less return on investment than American Lithium. In addition to that, Kaltura is 1.62 times more volatile than American Lithium Corp. It trades about 0.09 of its total potential returns per unit of risk. American Lithium Corp is currently generating about 0.26 per unit of volatility. If you would invest 35.00 in American Lithium Corp on October 20, 2024 and sell it today you would earn a total of 3.00 from holding American Lithium Corp or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.0% |
| Values | Daily Returns |
Kaltura vs. American Lithium Corp
Performance |
| Timeline |
| Kaltura |
| American Lithium Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kaltura and American Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and American Lithium
The main advantage of trading using opposite Kaltura and American Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, American Lithium 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 American Lithium will offset losses from the drop in American Lithium's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| American Lithium vs. Chart Industries | American Lithium vs. Highway Holdings Limited | American Lithium vs. Lipocine | American Lithium vs. Tritent International Agriculture |
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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