Correlation Between Kaltura and Zynga

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

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

Diversification Opportunities for Kaltura and Zynga

0.0

Correlation Coefficient

Kaltura  Zynga

Pay attention - limited upside

The 3 months correlation between Kaltura and Zynga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura and Zynga Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zynga Inc 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 Zynga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zynga Inc has no effect on the direction of Kaltura i.e., Kaltura and Zynga go up and down completely randomly.

Pair Corralation between Kaltura and Zynga

If you would invest  129.00  in Kaltura on September 17, 2024 and sell it today you would earn a total of  96.00  from holding Kaltura or generate 74.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kaltura  vs.  Zynga Inc

Kaltura

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kaltura are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Kaltura reported solid returns over the last few months and may actually be approaching a breakup point.

Zynga Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zynga Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Zynga is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kaltura and Zynga

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

The idea behind Kaltura and Zynga Inc 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..