Correlation Between Kaltura and GigaCloud Technology
Can any of the company-specific risk be diversified away by investing in both Kaltura and GigaCloud Technology 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 GigaCloud Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and GigaCloud Technology Class, you can compare the effects of market volatilities on Kaltura and GigaCloud Technology 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 GigaCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and GigaCloud Technology.
Diversification Opportunities for Kaltura and GigaCloud Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kaltura and GigaCloud is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and GigaCloud Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaCloud Technology 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 GigaCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaCloud Technology has no effect on the direction of Kaltura i.e., Kaltura and GigaCloud Technology go up and down completely randomly.
Pair Corralation between Kaltura and GigaCloud Technology
Given the investment horizon of 90 days Kaltura is expected to generate 3.44 times less return on investment than GigaCloud Technology. But when comparing it to its historical volatility, Kaltura is 1.5 times less risky than GigaCloud Technology. It trades about 0.03 of its potential returns per unit of risk. GigaCloud Technology Class is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 515.00 in GigaCloud Technology Class on January 15, 2025 and sell it today you would earn a total of 702.00 from holding GigaCloud Technology Class or generate 136.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kaltura vs. GigaCloud Technology Class
Performance |
| Timeline |
| Kaltura |
| GigaCloud Technology |
Kaltura and GigaCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and GigaCloud Technology
The main advantage of trading using opposite Kaltura and GigaCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, GigaCloud Technology 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 GigaCloud Technology will offset losses from the drop in GigaCloud Technology's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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