Correlation Between Kaltura and Repay Holdings

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

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

Diversification Opportunities for Kaltura and Repay Holdings

0.26

Correlation Coefficient

Kaltura  Repay Holdings

Modest diversification

The 3 months correlation between Kaltura and Repay is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp 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 Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Kaltura i.e., Kaltura and Repay Holdings go up and down completely randomly.

Pair Corralation between Kaltura and Repay Holdings

Given the investment horizon of 90 days Kaltura is expected to generate 2.11 times more return on investment than Repay Holdings. However, Kaltura is 2.11 times more volatile than Repay Holdings Corp. It trades about 0.12 of its potential returns per unit of risk. Repay Holdings Corp is currently generating about -0.05 per unit of risk. If you would invest  210.00  in Kaltura on September 23, 2024 and sell it today you would earn a total of  24.00  from holding Kaltura or generate 11.43% return on investment over 90 days.

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

Kaltura  vs.  Repay Holdings Corp

Kaltura

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Kaltura reported solid returns over the last few months and may actually be approaching a breakup point.

Repay Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Repay Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Kaltura and Repay Holdings

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

The idea behind Kaltura and Repay Holdings Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.