Correlation Between Mativ Holdings and Kaltura
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings 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 Mativ Holdings and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Kaltura, you can compare the effects of market volatilities on Mativ Holdings 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 Mativ Holdings with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Kaltura.
Diversification Opportunities for Mativ Holdings and Kaltura
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Kaltura is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings i.e., Mativ Holdings and Kaltura go up and down completely randomly.
Pair Corralation between Mativ Holdings and Kaltura
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, Mativ Holdings is 1.08 times less risky than Kaltura. The stock trades about -0.1 of its potential returns per unit of risk. The Kaltura is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Kaltura on August 31, 2024 and sell it today you would earn a total of 80.00 from holding Kaltura or generate 58.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Kaltura
Performance |
| Timeline |
| Mativ Holdings |
| Kaltura |
Mativ Holdings and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Kaltura
The main advantage of trading using opposite Mativ Holdings and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings 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.| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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