Correlation Between Kaltura and Lipocine

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

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

Diversification Opportunities for Kaltura and Lipocine

-0.04

Correlation Coefficient

Kaltura  Lipocine

Good diversification

The 3 months correlation between Kaltura and Lipocine is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Kaltura i.e., Kaltura and Lipocine go up and down completely randomly.

Pair Corralation between Kaltura and Lipocine

Given the investment horizon of 90 days Kaltura is expected to generate 1.9 times less return on investment than Lipocine. But when comparing it to its historical volatility, Kaltura is 1.37 times less risky than Lipocine. It trades about 0.03 of its potential returns per unit of risk. Lipocine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  424.00  in Lipocine on September 13, 2024 and sell it today you would earn a total of  107.00  from holding Lipocine or generate 25.24% return on investment over 90 days.

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

Kaltura  vs.  Lipocine

Kaltura

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 18 (%) 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.

Lipocine

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lipocine are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Lipocine displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kaltura and Lipocine

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

The idea behind Kaltura and Lipocine 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 Commodity Directory module to find actively traded commodities issued by global exchanges.