Correlation Between Baird Medical and Kaltura

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

By analyzing existing cross correlation between Baird Medical Investment and Kaltura, you can compare the effects of market volatilities on Baird Medical and Kaltura 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 Baird Medical with a short position of Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Medical and Kaltura.

Diversification Opportunities for Baird Medical and Kaltura

-0.27

Correlation Coefficient

Baird Medical  Kaltura

Very good diversification

The 3 months correlation between Baird and Kaltura is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Baird Medical Investment and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Baird Medical 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 Baird Medical Investment are associated (or correlated) with Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Baird Medical i.e., Baird Medical and Kaltura go up and down completely randomly.

Pair Corralation between Baird Medical and Kaltura

Given the investment horizon of 90 days Baird Medical Investment is expected to under-perform the Kaltura. In addition to that, Baird Medical is 1.88 times more volatile than Kaltura. It trades about -0.39 of its total potential returns per unit of risk. Kaltura is currently generating about 0.28 per unit of volatility. If you would invest  118.00  in Kaltura on September 12, 2024 and sell it today you would earn a total of  117.00  from holding Kaltura or generate 99.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	84.13%
Values	Daily Returns

Baird Medical Investment  vs.  Kaltura

Baird Medical Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baird Medical Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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.

Pair Trading with Baird Medical and Kaltura

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

The idea behind Baird Medical Investment and Kaltura 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.