Correlation Between Sabra Healthcare and Kaltura
Can any of the company-specific risk be diversified away by investing in both Sabra Healthcare 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 Sabra Healthcare and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabra Healthcare REIT and Kaltura, you can compare the effects of market volatilities on Sabra Healthcare 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 Sabra Healthcare with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Healthcare and Kaltura.
Diversification Opportunities for Sabra Healthcare and Kaltura
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabra and Kaltura is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Sabra Healthcare 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 Sabra Healthcare REIT 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 Sabra Healthcare i.e., Sabra Healthcare and Kaltura go up and down completely randomly.
Pair Corralation between Sabra Healthcare and Kaltura
Given the investment horizon of 90 days Sabra Healthcare is expected to generate 1.22 times less return on investment than Kaltura. But when comparing it to its historical volatility, Sabra Healthcare REIT is 3.05 times less risky than Kaltura. It trades about 0.11 of its potential returns per unit of risk. Kaltura is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 180.00 in Kaltura on September 3, 2024 and sell it today you would earn a total of 45.00 from holding Kaltura or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Healthcare REIT vs. Kaltura
Performance |
| Timeline |
| Sabra Healthcare REIT |
| Kaltura |
Sabra Healthcare and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Healthcare and Kaltura
The main advantage of trading using opposite Sabra Healthcare and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Healthcare 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.| Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare vs. Global Medical REIT | Sabra Healthcare vs. CareTrust REIT | Sabra Healthcare vs. Welltower |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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