Correlation Between HF Sinclair and Kaltura

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

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

Diversification Opportunities for HF Sinclair and Kaltura

0.73

Correlation Coefficient

HF Sinclair  Kaltura

Poor diversification

The 3 months correlation between DINO and Kaltura is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and HF Sinclair 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 HF Sinclair Corp 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 HF Sinclair i.e., HF Sinclair and Kaltura go up and down completely randomly.

Pair Corralation between HF Sinclair and Kaltura

Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.48 times more return on investment than Kaltura. However, HF Sinclair Corp is 2.08 times less risky than Kaltura. It trades about 0.0 of its potential returns per unit of risk. Kaltura is currently generating about -0.02 per unit of risk. If you would invest  3,367  in HF Sinclair Corp on December 28, 2024 and sell it today you would lose (61.00) from holding HF Sinclair Corp or give up 1.81% of portfolio value over 90 days.

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

HF Sinclair Corp  vs.  Kaltura

HF Sinclair Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days HF Sinclair Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, HF Sinclair is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Kaltura

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kaltura has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Kaltura is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with HF Sinclair and Kaltura

The main advantage of trading using opposite HF Sinclair and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair 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 HF Sinclair Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.