Correlation Between Kaltura and GE Vernova

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

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

Diversification Opportunities for Kaltura and GE Vernova

0.54

Correlation Coefficient

Kaltura  GE Vernova

Very weak diversification

The 3 months correlation between Kaltura and GEV is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC and Kaltura 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 Kaltura are associated (or correlated) with GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of Kaltura i.e., Kaltura and GE Vernova go up and down completely randomly.

Pair Corralation between Kaltura and GE Vernova

Given the investment horizon of 90 days Kaltura is expected to generate 1.57 times less return on investment than GE Vernova. In addition to that, Kaltura is 1.1 times more volatile than GE Vernova LLC. It trades about 0.0 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about 0.01 per unit of volatility. If you would invest  33,380  in GE Vernova LLC on December 27, 2024 and sell it today you would lose (1,610) from holding GE Vernova LLC or give up 4.82% of portfolio value over 90 days.

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

Kaltura  vs.  GE Vernova LLC

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.

GE Vernova LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days GE Vernova LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, GE Vernova is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kaltura and GE Vernova

The main advantage of trading using opposite Kaltura and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura position performs unexpectedly, GE Vernova 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 GE Vernova will offset losses from the drop in GE Vernova's long position.

The idea behind Kaltura and GE Vernova LLC 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.