Correlation Between Repay Holdings and Kaltura
Can any of the company-specific risk be diversified away by investing in both Repay 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 Repay Holdings and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repay Holdings Corp and Kaltura, you can compare the effects of market volatilities on Repay 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 Repay Holdings with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repay Holdings and Kaltura.
Diversification Opportunities for Repay Holdings and Kaltura
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Repay and Kaltura is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Repay Holdings Corp and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Repay 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 Repay Holdings Corp 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 Repay Holdings i.e., Repay Holdings and Kaltura go up and down completely randomly.
Pair Corralation between Repay Holdings and Kaltura
Given the investment horizon of 90 days Repay Holdings Corp is expected to generate 0.26 times more return on investment than Kaltura. However, Repay Holdings Corp is 3.8 times less risky than Kaltura. It trades about -0.11 of its potential returns per unit of risk. Kaltura is currently generating about -0.07 per unit of risk. If you would invest 770.00 in Repay Holdings Corp on November 4, 2024 and sell it today you would lose (23.00) from holding Repay Holdings Corp or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repay Holdings Corp vs. Kaltura
Performance |
| Timeline |
| Repay Holdings Corp |
| Kaltura |
Repay Holdings and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repay Holdings and Kaltura
The main advantage of trading using opposite Repay Holdings and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repay 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.| Repay Holdings vs. Global Blue Group | Repay Holdings vs. Optiva Inc | Repay Holdings vs. Sangoma Technologies Corp | Repay Holdings vs. Evertec |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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