Correlation Between Kaltura and Sabra Healthcare
Can any of the company-specific risk be diversified away by investing in both Kaltura and Sabra Healthcare 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 Sabra Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Sabra Healthcare REIT, you can compare the effects of market volatilities on Kaltura and Sabra Healthcare 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 Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Sabra Healthcare.
Diversification Opportunities for Kaltura and Sabra Healthcare
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kaltura and Sabra is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Sabra Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Healthcare REIT 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 Sabra Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Healthcare REIT has no effect on the direction of Kaltura i.e., Kaltura and Sabra Healthcare go up and down completely randomly.
Pair Corralation between Kaltura and Sabra Healthcare
Given the investment horizon of 90 days Kaltura is expected to generate 3.05 times more return on investment than Sabra Healthcare. However, Kaltura is 3.05 times more volatile than Sabra Healthcare REIT. It trades about 0.04 of its potential returns per unit of risk. Sabra Healthcare REIT is currently generating about 0.11 per unit of risk. If you would invest 180.00 in Kaltura on September 3, 2024 and sell it today you would earn a total of 45.00 from holding Kaltura or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Sabra Healthcare REIT
Performance |
| Timeline |
| Kaltura |
| Sabra Healthcare REIT |
Kaltura and Sabra Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Sabra Healthcare
The main advantage of trading using opposite Kaltura and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Sabra Healthcare 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 Sabra Healthcare will offset losses from the drop in Sabra Healthcare's long position.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare vs. Global Medical REIT | Sabra Healthcare vs. CareTrust REIT | Sabra Healthcare vs. Welltower |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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