Correlation Between Apogee Enterprises and Kaltura

Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises 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 Apogee Enterprises and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apogee Enterprises and Kaltura, you can compare the effects of market volatilities on Apogee Enterprises 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 Apogee Enterprises with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and Kaltura.

Diversification Opportunities for Apogee Enterprises and Kaltura

0.32

Correlation Coefficient

Apogee Enterprises  Kaltura

Weak diversification

The 3 months correlation between Apogee and Kaltura is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises i.e., Apogee Enterprises and Kaltura go up and down completely randomly.

Pair Corralation between Apogee Enterprises and Kaltura

Given the investment horizon of 90 days Apogee Enterprises is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, Apogee Enterprises is 2.63 times less risky than Kaltura. The stock trades about -0.14 of its potential returns per unit of risk. The Kaltura is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  131.00  in Kaltura on October 4, 2024 and sell it today you would earn a total of  102.00  from holding Kaltura or generate 77.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Apogee Enterprises  vs.  Kaltura

Apogee Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Kaltura

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Kaltura reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apogee Enterprises and Kaltura

The main advantage of trading using opposite Apogee Enterprises and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises 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 Apogee Enterprises 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.