Correlation Between AuthID and Kaltura

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

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

Diversification Opportunities for AuthID and Kaltura

0.37

Correlation Coefficient

AuthID  Kaltura

Weak diversification

The 3 months correlation between AuthID and Kaltura is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and AuthID 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 authID Inc 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 AuthID i.e., AuthID and Kaltura go up and down completely randomly.

Pair Corralation between AuthID and Kaltura

Given the investment horizon of 90 days authID Inc is expected to under-perform the Kaltura. In addition to that, AuthID is 1.29 times more volatile than Kaltura. It trades about -0.01 of its total potential returns per unit of risk. Kaltura is currently generating about 0.01 per unit of volatility. If you would invest  222.00  in Kaltura on November 28, 2024 and sell it today you would lose (9.00) from holding Kaltura or give up 4.05% of portfolio value over 90 days.

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

authID Inc  vs.  Kaltura

authID Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days authID Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, AuthID is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Kaltura

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Kaltura is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with AuthID and Kaltura

The main advantage of trading using opposite AuthID and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuthID 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 authID Inc 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.