Correlation Between Viemed Healthcare and Kaltura

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

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

Diversification Opportunities for Viemed Healthcare and Kaltura

0.48

Correlation Coefficient

Viemed Healthcare  Kaltura

Very weak diversification

The 3 months correlation between Viemed and Kaltura is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Viemed Healthcare 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 Viemed Healthcare 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 Viemed Healthcare i.e., Viemed Healthcare and Kaltura go up and down completely randomly.

Pair Corralation between Viemed Healthcare and Kaltura

Considering the 90-day investment horizon Viemed Healthcare is expected to generate 1.49 times less return on investment than Kaltura. But when comparing it to its historical volatility, Viemed Healthcare is 1.4 times less risky than Kaltura. It trades about 0.03 of its potential returns per unit of risk. Kaltura is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  184.00  in Kaltura on September 2, 2024 and sell it today you would earn a total of  38.00  from holding Kaltura or generate 20.65% return on investment over 90 days.

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

Viemed Healthcare  vs.  Kaltura

Viemed Healthcare

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Viemed Healthcare are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile primary indicators, Viemed Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 Viemed Healthcare and Kaltura

The main advantage of trading using opposite Viemed Healthcare and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare 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 Viemed Healthcare 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.