Correlation Between Kaltura and Hub Cyber

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

By analyzing existing cross correlation between Kaltura and Hub Cyber Security, you can compare the effects of market volatilities on Kaltura and Hub Cyber 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 Hub Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Hub Cyber.

Diversification Opportunities for Kaltura and Hub Cyber

0.73

Correlation Coefficient

Kaltura  Hub Cyber

Poor diversification

The 3 months correlation between Kaltura and Hub is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Hub Cyber Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Cyber Security 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 Hub Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Cyber Security has no effect on the direction of Kaltura i.e., Kaltura and Hub Cyber go up and down completely randomly.

Pair Corralation between Kaltura and Hub Cyber

Given the investment horizon of 90 days Kaltura is expected to generate 0.42 times more return on investment than Hub Cyber. However, Kaltura is 2.37 times less risky than Hub Cyber. It trades about -0.02 of its potential returns per unit of risk. Hub Cyber Security is currently generating about -0.05 per unit of risk. If you would invest  220.00  in Kaltura on December 28, 2024 and sell it today you would lose (28.00) from holding Kaltura or give up 12.73% of portfolio value over 90 days.

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

Kaltura  vs.  Hub Cyber Security

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.

Hub Cyber Security

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hub Cyber Security has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Kaltura and Hub Cyber

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

The idea behind Kaltura and Hub Cyber Security 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.