Correlation Between Kaltura and Taoping

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

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

Diversification Opportunities for Kaltura and Taoping

-0.8

Correlation Coefficient

Kaltura  Taoping

Pay attention - limited upside

The 3 months correlation between Kaltura and Taoping is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Taoping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taoping 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 Taoping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taoping has no effect on the direction of Kaltura i.e., Kaltura and Taoping go up and down completely randomly.

Pair Corralation between Kaltura and Taoping

Given the investment horizon of 90 days Kaltura is expected to generate 0.64 times more return on investment than Taoping. However, Kaltura is 1.57 times less risky than Taoping. It trades about 0.2 of its potential returns per unit of risk. Taoping is currently generating about -0.04 per unit of risk. If you would invest  136.00  in Kaltura on September 23, 2024 and sell it today you would earn a total of  98.00  from holding Kaltura or generate 72.06% return on investment over 90 days.

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

Kaltura  vs.  Taoping

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.

Taoping

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Taoping has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Kaltura and Taoping

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

The idea behind Kaltura and Taoping 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.