Correlation Between Kaltura and Mogo

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

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

Diversification Opportunities for Kaltura and Mogo

-0.38

Correlation Coefficient

Kaltura  Mogo

Very good diversification

The 3 months correlation between Kaltura and Mogo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc 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 Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Kaltura i.e., Kaltura and Mogo go up and down completely randomly.

Pair Corralation between Kaltura and Mogo

Given the investment horizon of 90 days Kaltura is expected to generate 0.89 times more return on investment than Mogo. However, Kaltura is 1.13 times less risky than Mogo. It trades about 0.04 of its potential returns per unit of risk. Mogo Inc is currently generating about 0.0 per unit of risk. If you would invest  189.00  in Kaltura on November 20, 2024 and sell it today you would earn a total of  72.00  from holding Kaltura or generate 38.1% return on investment over 90 days.

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

Kaltura  vs.  Mogo Inc

Kaltura

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 8 (%) 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.

Mogo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mogo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Kaltura and Mogo

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

The idea behind Kaltura and Mogo Inc 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.