Correlation Between MCF Energy and Kaltura
Can any of the company-specific risk be diversified away by investing in both MCF Energy 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 MCF Energy and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCF Energy and Kaltura, you can compare the effects of market volatilities on MCF Energy 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 MCF Energy with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCF Energy and Kaltura.
Diversification Opportunities for MCF Energy and Kaltura
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MCF and Kaltura is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding MCF Energy and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and MCF Energy 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 MCF Energy 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 MCF Energy i.e., MCF Energy and Kaltura go up and down completely randomly.
Pair Corralation between MCF Energy and Kaltura
Assuming the 90 days horizon MCF Energy is expected to under-perform the Kaltura. In addition to that, MCF Energy is 3.41 times more volatile than Kaltura. It trades about -0.27 of its total potential returns per unit of risk. Kaltura is currently generating about 0.17 per unit of volatility. If you would invest 209.00 in Kaltura on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Kaltura or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MCF Energy vs. Kaltura
Performance |
| Timeline |
| MCF Energy |
| Kaltura |
MCF Energy and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCF Energy and Kaltura
The main advantage of trading using opposite MCF Energy and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCF Energy 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.| MCF Energy vs. The Joint Corp | MCF Energy vs. NH Foods Ltd | MCF Energy vs. SunOpta | MCF Energy vs. AMCON Distributing |
| 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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