Correlation Between Kaltura and Postal Realty
Can any of the company-specific risk be diversified away by investing in both Kaltura and Postal Realty 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 Postal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Postal Realty Trust, you can compare the effects of market volatilities on Kaltura and Postal Realty 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 Postal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Postal Realty.
Diversification Opportunities for Kaltura and Postal Realty
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaltura and Postal is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Postal Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Realty Trust 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 Postal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Realty Trust has no effect on the direction of Kaltura i.e., Kaltura and Postal Realty go up and down completely randomly.
Pair Corralation between Kaltura and Postal Realty
Given the investment horizon of 90 days Kaltura is expected to generate 4.8 times more return on investment than Postal Realty. However, Kaltura is 4.8 times more volatile than Postal Realty Trust. It trades about 0.47 of its potential returns per unit of risk. Postal Realty Trust is currently generating about 0.03 per unit of risk. If you would invest 132.00 in Kaltura on September 2, 2024 and sell it today you would earn a total of 90.00 from holding Kaltura or generate 68.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Postal Realty Trust
Performance |
| Timeline |
| Kaltura |
| Postal Realty Trust |
Kaltura and Postal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Postal Realty
The main advantage of trading using opposite Kaltura and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Postal Realty 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 Postal Realty will offset losses from the drop in Postal Realty's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Postal Realty vs. Office Properties Income | Postal Realty vs. Boston Properties | Postal Realty vs. SL Green Realty | Postal Realty vs. Alexandria Real Estate |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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