Correlation Between Kaltura and Sinclair

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

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

Diversification Opportunities for Kaltura and Sinclair

0.14

Correlation Coefficient

Kaltura  Sinclair

Average diversification

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

Pair Corralation between Kaltura and Sinclair

Given the investment horizon of 90 days Kaltura is expected to generate 2.13 times more return on investment than Sinclair. However, Kaltura is 2.13 times more volatile than Sinclair Television Group. It trades about 0.26 of its potential returns per unit of risk. Sinclair Television Group is currently generating about 0.2 per unit of risk. If you would invest  112.00  in Kaltura on August 31, 2024 and sell it today you would earn a total of  104.00  from holding Kaltura or generate 92.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Kaltura  vs.  Sinclair Television Group

Kaltura

Risk-Adjusted Performance

20 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 20 (%) 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.

Sinclair Television

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sinclair Television Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Sinclair sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kaltura and Sinclair

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

The idea behind Kaltura and Sinclair Television Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..