Correlation Between Kaltura and CDW Corp
Can any of the company-specific risk be diversified away by investing in both Kaltura and CDW Corp 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 CDW Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and CDW Corp, you can compare the effects of market volatilities on Kaltura and CDW Corp 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 CDW Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and CDW Corp.
Diversification Opportunities for Kaltura and CDW Corp
Pay attention - limited upside
The 3 months correlation between Kaltura and CDW is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and CDW Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDW 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 CDW Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDW Corp has no effect on the direction of Kaltura i.e., Kaltura and CDW Corp go up and down completely randomly.
Pair Corralation between Kaltura and CDW Corp
Given the investment horizon of 90 days Kaltura is expected to generate 2.92 times more return on investment than CDW Corp. However, Kaltura is 2.92 times more volatile than CDW Corp. It trades about 0.5 of its potential returns per unit of risk. CDW Corp is currently generating about -0.15 per unit of risk. If you would invest 127.00 in Kaltura on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Kaltura or generate 74.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. CDW Corp
Performance |
| Timeline |
| Kaltura |
| CDW Corp |
Kaltura and CDW Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and CDW Corp
The main advantage of trading using opposite Kaltura and CDW Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, CDW Corp 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 CDW Corp will offset losses from the drop in CDW Corp's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| CDW Corp vs. Desktop Metal | CDW Corp vs. Fabrinet | CDW Corp vs. Knowles Cor | CDW Corp vs. Ubiquiti Networks |
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.
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