Correlation Between Kaltura and QUICKEN

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

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

Diversification Opportunities for Kaltura and QUICKEN

-0.71

Correlation Coefficient

Kaltura  QUICKEN

Pay attention - limited upside

The 3 months correlation between Kaltura and QUICKEN is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and QUICKEN LNS LLCQUICKEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUICKEN LNS LLCQUICKEN 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 QUICKEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUICKEN LNS LLCQUICKEN has no effect on the direction of Kaltura i.e., Kaltura and QUICKEN go up and down completely randomly.

Pair Corralation between Kaltura and QUICKEN

Given the investment horizon of 90 days Kaltura is expected to generate 48.75 times less return on investment than QUICKEN. But when comparing it to its historical volatility, Kaltura is 20.27 times less risky than QUICKEN. It trades about 0.03 of its potential returns per unit of risk. QUICKEN LNS LLCQUICKEN is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  8,537  in QUICKEN LNS LLCQUICKEN on September 12, 2024 and sell it today you would lose (183.00) from holding QUICKEN LNS LLCQUICKEN or give up 2.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.47%
Values	Daily Returns

Kaltura  vs.  QUICKEN LNS LLCQUICKEN

Kaltura

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 21 (%) 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.

QUICKEN LNS LLCQUICKEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QUICKEN LNS LLCQUICKEN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for QUICKEN LNS LLCQUICKEN investors.

Pair Trading with Kaltura and QUICKEN

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

The idea behind Kaltura and QUICKEN LNS LLCQUICKEN 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.

Check out your portfolio center.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.