Correlation Between Life Time and Kaltura
Can any of the company-specific risk be diversified away by investing in both Life Time and Kaltura 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 Life Time and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and Kaltura, you can compare the effects of market volatilities on Life Time and Kaltura 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 Life Time with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Kaltura.
Diversification Opportunities for Life Time and Kaltura
Good diversification
The 3 months correlation between Life and Kaltura is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Life Time 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 Life Time Group are associated (or correlated) with Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Life Time i.e., Life Time and Kaltura go up and down completely randomly.
Pair Corralation between Life Time and Kaltura
Considering the 90-day investment horizon Life Time Group is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, Life Time Group is 2.21 times less risky than Kaltura. The stock trades about -0.2 of its potential returns per unit of risk. The Kaltura is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 208.00 in Kaltura on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Kaltura or generate 11.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Time Group vs. Kaltura
Performance |
| Timeline |
| Life Time Group |
| Kaltura |
Life Time and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and Kaltura
The main advantage of trading using opposite Life Time and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, Kaltura 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 Kaltura will offset losses from the drop in Kaltura's long position.| Life Time vs. Planet Fitness | Life Time vs. Bowlero Corp | Life Time vs. JAKKS Pacific | Life Time vs. Acushnet Holdings Corp |
| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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