Correlation Between Kaltura and Keurig

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

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

Diversification Opportunities for Kaltura and Keurig

0.14

Correlation Coefficient

Kaltura  Keurig

Average diversification

The 3 months correlation between Kaltura and Keurig is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Kaltura i.e., Kaltura and Keurig go up and down completely randomly.

Pair Corralation between Kaltura and Keurig

Given the investment horizon of 90 days Kaltura is expected to under-perform the Keurig. In addition to that, Kaltura is 39.21 times more volatile than Keurig Dr Pepper. It trades about -0.02 of its total potential returns per unit of risk. Keurig Dr Pepper is currently generating about 0.02 per unit of volatility. If you would invest  9,973  in Keurig Dr Pepper on December 29, 2024 and sell it today you would earn a total of  12.00  from holding Keurig Dr Pepper or generate 0.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Kaltura  vs.  Keurig Dr Pepper

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.

Keurig Dr Pepper

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Keurig Dr Pepper are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Keurig is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kaltura and Keurig

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

The idea behind Kaltura and Keurig Dr Pepper 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.