Correlation Between China Aircraft and Kaltura

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Can any of the company-specific risk be diversified away by investing in both China Aircraft 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 China Aircraft and Kaltura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aircraft Leasing and Kaltura, you can compare the effects of market volatilities on China Aircraft 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 China Aircraft with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Kaltura.

Diversification Opportunities for China Aircraft and Kaltura

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between China and Kaltura is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and China Aircraft 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 China Aircraft Leasing 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 China Aircraft i.e., China Aircraft and Kaltura go up and down completely randomly.

Pair Corralation between China Aircraft and Kaltura

Assuming the 90 days horizon China Aircraft Leasing is expected to under-perform the Kaltura. But the pink sheet apears to be less risky and, when comparing its historical volatility, China Aircraft Leasing is 4.7 times less risky than Kaltura. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Kaltura is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  128.00  in Kaltura on September 14, 2024 and sell it today you would earn a total of  106.00  from holding Kaltura or generate 82.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

China Aircraft Leasing  vs.  Kaltura

 Performance 
       Timeline  
China Aircraft Leasing 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days China Aircraft Leasing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Kaltura 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Kaltura reported solid returns over the last few months and may actually be approaching a breakup point.

China Aircraft and Kaltura Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with China Aircraft and Kaltura

The main advantage of trading using opposite China Aircraft and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft 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 China Aircraft Leasing 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.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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