Correlation Between Kaltura and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both Kaltura and Aurora Mobile 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 Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Aurora Mobile, you can compare the effects of market volatilities on Kaltura and Aurora Mobile 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 Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Aurora Mobile.
Diversification Opportunities for Kaltura and Aurora Mobile
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kaltura and Aurora is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile 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 Aurora Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Mobile has no effect on the direction of Kaltura i.e., Kaltura and Aurora Mobile go up and down completely randomly.
Pair Corralation between Kaltura and Aurora Mobile
Given the investment horizon of 90 days Kaltura is expected to generate 0.41 times more return on investment than Aurora Mobile. However, Kaltura is 2.44 times less risky than Aurora Mobile. It trades about 0.45 of its potential returns per unit of risk. Aurora Mobile is currently generating about 0.1 per unit of risk. If you would invest 132.00 in Kaltura on August 24, 2024 and sell it today you would earn a total of 88.00 from holding Kaltura or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Aurora Mobile
Performance |
| Timeline |
| Kaltura |
| Aurora Mobile |
Kaltura and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Aurora Mobile
The main advantage of trading using opposite Kaltura and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Aurora Mobile 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 Aurora Mobile will offset losses from the drop in Aurora Mobile's long position.| Kaltura vs. Alkami Technology | Kaltura vs. Paycor HCM | Kaltura vs. Procore Technologies | Kaltura vs. Enfusion |
| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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