Correlation Between Kaltura and Hub Cyber

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

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

Diversification Opportunities for Kaltura and Hub Cyber

0.41

Correlation Coefficient

Kaltura  Hub Cyber

Very weak diversification

The 3 months correlation between Kaltura and Hub is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Hub Cyber Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Cyber Security 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 Hub Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Cyber Security has no effect on the direction of Kaltura i.e., Kaltura and Hub Cyber go up and down completely randomly.

Pair Corralation between Kaltura and Hub Cyber

Given the investment horizon of 90 days Kaltura is expected to generate 1.0 times more return on investment than Hub Cyber. However, Kaltura is 1.0 times less risky than Hub Cyber. It trades about 0.17 of its potential returns per unit of risk. Hub Cyber Security is currently generating about 0.03 per unit of risk. If you would invest  136.00  in Kaltura on August 30, 2024 and sell it today you would earn a total of  80.00  from holding Kaltura or generate 58.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Kaltura  vs.  Hub Cyber Security

Kaltura

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Kaltura reported solid returns over the last few months and may actually be approaching a breakup point.

Hub Cyber Security

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hub Cyber Security are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Hub Cyber may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Kaltura and Hub Cyber

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

The idea behind Kaltura and Hub Cyber Security 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.