Correlation Between Kaltura and KROGER

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

By analyzing existing cross correlation between Kaltura and KROGER 75 percent, you can compare the effects of market volatilities on Kaltura and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and KROGER.

Diversification Opportunities for Kaltura and KROGER

-0.43

Correlation Coefficient

Kaltura  KROGER

Very good diversification

The 3 months correlation between Kaltura and KROGER is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and KROGER 75 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 75 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 75 percent has no effect on the direction of Kaltura i.e., Kaltura and KROGER go up and down completely randomly.

Pair Corralation between Kaltura and KROGER

Given the investment horizon of 90 days Kaltura is expected to under-perform the KROGER. In addition to that, Kaltura is 10.71 times more volatile than KROGER 75 percent. It trades about -0.02 of its total potential returns per unit of risk. KROGER 75 percent is currently generating about 0.03 per unit of volatility. If you would invest  11,218  in KROGER 75 percent on December 29, 2024 and sell it today you would earn a total of  74.00  from holding KROGER 75 percent or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.16%
Values	Daily Returns

Kaltura  vs.  KROGER 75 percent

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.

KROGER 75 percent

Risk-Adjusted Performance

Weak

Over the last 90 days KROGER 75 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KROGER is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kaltura and KROGER

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

The idea behind Kaltura and KROGER 75 percent 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.