Correlation Between Kaltura and NiSource
Can any of the company-specific risk be diversified away by investing in both Kaltura and NiSource 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 NiSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and NiSource, you can compare the effects of market volatilities on Kaltura and NiSource 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 NiSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and NiSource.
Diversification Opportunities for Kaltura and NiSource
Almost no diversification
The 3 months correlation between Kaltura and NiSource is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource 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 NiSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiSource has no effect on the direction of Kaltura i.e., Kaltura and NiSource go up and down completely randomly.
Pair Corralation between Kaltura and NiSource
Given the investment horizon of 90 days Kaltura is expected to generate 5.62 times more return on investment than NiSource. However, Kaltura is 5.62 times more volatile than NiSource. It trades about 0.5 of its potential returns per unit of risk. NiSource is currently generating about 0.38 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. NiSource
Performance |
| Timeline |
| Kaltura |
| NiSource |
Kaltura and NiSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and NiSource
The main advantage of trading using opposite Kaltura and NiSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, NiSource 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 NiSource will offset losses from the drop in NiSource's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| NiSource vs. NorthWestern | NiSource vs. Avista | NiSource vs. Otter Tail | NiSource vs. Companhia Paranaense de |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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