Correlation Between Snap On and Kaltura
Can any of the company-specific risk be diversified away by investing in both Snap On 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 Snap On and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap On and Kaltura, you can compare the effects of market volatilities on Snap On 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 Snap On with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap On and Kaltura.
Diversification Opportunities for Snap On and Kaltura
Very poor diversification
The 3 months correlation between Snap and Kaltura is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Snap On and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Snap On 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 Snap On 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 Snap On i.e., Snap On and Kaltura go up and down completely randomly.
Pair Corralation between Snap On and Kaltura
Considering the 90-day investment horizon Snap On is expected to generate 1.6 times less return on investment than Kaltura. But when comparing it to its historical volatility, Snap On is 2.83 times less risky than Kaltura. It trades about 0.08 of its potential returns per unit of risk. Kaltura is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 179.00 in Kaltura on September 4, 2024 and sell it today you would earn a total of 59.00 from holding Kaltura or generate 32.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap On vs. Kaltura
Performance |
| Timeline |
| Snap On |
| Kaltura |
Snap On and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap On and Kaltura
The main advantage of trading using opposite Snap On and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap On 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.| Snap On vs. Lincoln Electric Holdings | Snap On vs. Timken Company | Snap On vs. Kennametal | Snap On vs. Toro Co |
| Kaltura vs. HeartCore Enterprises | Kaltura vs. Beamr Imaging Ltd | Kaltura vs. Trust Stamp | Kaltura vs. CXApp Inc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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