Correlation Between Kaltura and Argo Group
Can any of the company-specific risk be diversified away by investing in both Kaltura and Argo Group 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 Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Argo Group International, you can compare the effects of market volatilities on Kaltura and Argo Group 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Argo Group.
Diversification Opportunities for Kaltura and Argo Group
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kaltura and Argo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International 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 Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of Kaltura i.e., Kaltura and Argo Group go up and down completely randomly.
Pair Corralation between Kaltura and Argo Group
Given the investment horizon of 90 days Kaltura is expected to generate 21.04 times more return on investment than Argo Group. However, Kaltura is 21.04 times more volatile than Argo Group International. It trades about 0.43 of its potential returns per unit of risk. Argo Group International is currently generating about 0.19 per unit of risk. If you would invest 131.00 in Kaltura on August 27, 2024 and sell it today you would earn a total of 79.00 from holding Kaltura or generate 60.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Argo Group International
Performance |
| Timeline |
| Kaltura |
| Argo Group International |
Kaltura and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Argo Group
The main advantage of trading using opposite Kaltura and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Argo Group vs. Newpark Resources | Argo Group vs. Hurco Companies | Argo Group vs. Dream Finders Homes | Argo Group vs. Park Ohio Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |