Correlation Between Kaltura and Lincoln Electric
Can any of the company-specific risk be diversified away by investing in both Kaltura and Lincoln Electric 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 Lincoln Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Lincoln Electric Holdings, you can compare the effects of market volatilities on Kaltura and Lincoln Electric 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 Lincoln Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Lincoln Electric.
Diversification Opportunities for Kaltura and Lincoln Electric
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kaltura and Lincoln is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Lincoln Electric Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Electric Holdings 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 Lincoln Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Electric Holdings has no effect on the direction of Kaltura i.e., Kaltura and Lincoln Electric go up and down completely randomly.
Pair Corralation between Kaltura and Lincoln Electric
Given the investment horizon of 90 days Kaltura is expected to generate 2.4 times more return on investment than Lincoln Electric. However, Kaltura is 2.4 times more volatile than Lincoln Electric Holdings. It trades about 0.04 of its potential returns per unit of risk. Lincoln Electric Holdings is currently generating about 0.03 per unit of risk. If you would invest 179.00 in Kaltura on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Kaltura or generate 24.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Lincoln Electric Holdings
Performance |
| Timeline |
| Kaltura |
| Lincoln Electric Holdings |
Kaltura and Lincoln Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Lincoln Electric
The main advantage of trading using opposite Kaltura and Lincoln Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Lincoln Electric 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 Lincoln Electric will offset losses from the drop in Lincoln Electric's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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