Correlation Between WixCom and Kaltura
Can any of the company-specific risk be diversified away by investing in both WixCom 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 WixCom and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WixCom and Kaltura, you can compare the effects of market volatilities on WixCom 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 WixCom with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of WixCom and Kaltura.
Diversification Opportunities for WixCom and Kaltura
Almost no diversification
The 3 months correlation between WixCom and Kaltura is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding WixCom and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and WixCom 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 WixCom 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 WixCom i.e., WixCom and Kaltura go up and down completely randomly.
Pair Corralation between WixCom and Kaltura
Considering the 90-day investment horizon WixCom is expected to generate 0.63 times more return on investment than Kaltura. However, WixCom is 1.58 times less risky than Kaltura. It trades about 0.13 of its potential returns per unit of risk. Kaltura is currently generating about 0.04 per unit of risk. If you would invest 9,829 in WixCom on September 14, 2024 and sell it today you would earn a total of 12,132 from holding WixCom or generate 123.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WixCom vs. Kaltura
Performance |
| Timeline |
| WixCom |
| Kaltura |
WixCom and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WixCom and Kaltura
The main advantage of trading using opposite WixCom and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WixCom 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.The idea behind WixCom and Kaltura pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |