Correlation Between Kaltura and Snap On
Can any of the company-specific risk be diversified away by investing in both Kaltura and Snap On 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 Snap On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Snap On, you can compare the effects of market volatilities on Kaltura and Snap On 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 Snap On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Snap On.
Diversification Opportunities for Kaltura and Snap On
Very poor diversification
The 3 months correlation between Kaltura and Snap is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Snap On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap On 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 Snap On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap On has no effect on the direction of Kaltura i.e., Kaltura and Snap On go up and down completely randomly.
Pair Corralation between Kaltura and Snap On
Given the investment horizon of 90 days Kaltura is expected to generate 2.83 times more return on investment than Snap On. However, Kaltura is 2.83 times more volatile than Snap On. It trades about 0.05 of its potential returns per unit of risk. Snap On is currently generating about 0.08 per unit of risk. If you would invest 179.00 in Kaltura on September 4, 2024 and sell it today you would earn a total of 59.00 from holding Kaltura or generate 32.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaltura vs. Snap On
Performance |
| Timeline |
| Kaltura |
| Snap On |
Kaltura and Snap On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Snap On
The main advantage of trading using opposite Kaltura and Snap On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, Snap On 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 Snap On will offset losses from the drop in Snap On's long position.| Kaltura vs. HeartCore Enterprises | Kaltura vs. Beamr Imaging Ltd | Kaltura vs. Trust Stamp | Kaltura vs. CXApp Inc |
| Snap On vs. Lincoln Electric Holdings | Snap On vs. Timken Company | Snap On vs. Kennametal | Snap On vs. Toro Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |