Correlation Between Kaltura and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Kaltura and Cardinal Health 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 Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Cardinal Health, you can compare the effects of market volatilities on Kaltura and Cardinal Health 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 Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Cardinal Health.
Diversification Opportunities for Kaltura and Cardinal Health
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kaltura and Cardinal is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health 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 Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of Kaltura i.e., Kaltura and Cardinal Health go up and down completely randomly.
Pair Corralation between Kaltura and Cardinal Health
Given the investment horizon of 90 days Kaltura is expected to generate 2.73 times more return on investment than Cardinal Health. However, Kaltura is 2.73 times more volatile than Cardinal Health. It trades about 0.04 of its potential returns per unit of risk. Cardinal Health is currently generating about 0.07 per unit of risk. If you would invest 159.00 in Kaltura on September 14, 2024 and sell it today you would earn a total of 75.00 from holding Kaltura or generate 47.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Cardinal Health
Performance |
| Timeline |
| Kaltura |
| Cardinal Health |
Kaltura and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Cardinal Health
The main advantage of trading using opposite Kaltura and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Cardinal Health 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 Cardinal Health will offset losses from the drop in Cardinal Health's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Cardinal Health vs. Henry Schein | Cardinal Health vs. Owens Minor | Cardinal Health vs. Patterson Companies | Cardinal Health vs. McKesson |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |