Correlation Between NiSource and Kaltura
Can any of the company-specific risk be diversified away by investing in both NiSource 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 NiSource and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and Kaltura, you can compare the effects of market volatilities on NiSource 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 NiSource with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Kaltura.
Diversification Opportunities for NiSource and Kaltura
Almost no diversification
The 3 months correlation between NiSource and Kaltura is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and NiSource 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 NiSource 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 NiSource i.e., NiSource and Kaltura go up and down completely randomly.
Pair Corralation between NiSource and Kaltura
Allowing for the 90-day total investment horizon NiSource is expected to generate 7.33 times less return on investment than Kaltura. But when comparing it to its historical volatility, NiSource is 5.62 times less risky than Kaltura. It trades about 0.38 of its potential returns per unit of risk. Kaltura is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Kaltura on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Kaltura or generate 74.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NiSource vs. Kaltura
Performance |
| Timeline |
| NiSource |
| Kaltura |
NiSource and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Kaltura
The main advantage of trading using opposite NiSource and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource 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.| NiSource vs. NorthWestern | NiSource vs. Avista | NiSource vs. Otter Tail | NiSource vs. Companhia Paranaense de |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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