Correlation Between Bridgeline Digital and Kaltura

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

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

Diversification Opportunities for Bridgeline Digital and Kaltura

0.56

Correlation Coefficient

Bridgeline Digital  Kaltura

Very weak diversification

The 3 months correlation between Bridgeline and Kaltura is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bridgeline Digital and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura and Bridgeline Digital 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 Bridgeline Digital 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 Bridgeline Digital i.e., Bridgeline Digital and Kaltura go up and down completely randomly.

Pair Corralation between Bridgeline Digital and Kaltura

Given the investment horizon of 90 days Bridgeline Digital is expected to generate 1.09 times more return on investment than Kaltura. However, Bridgeline Digital is 1.09 times more volatile than Kaltura. It trades about -0.13 of its potential returns per unit of risk. Kaltura is currently generating about -0.15 per unit of risk. If you would invest  187.00  in Bridgeline Digital on May 7, 2025 and sell it today you would lose (41.00) from holding Bridgeline Digital or give up 21.93% of portfolio value over 90 days.

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

Bridgeline Digital  vs.  Kaltura

Bridgeline Digital

Risk-Adjusted Performance

Weakest

Over the last 90 days Bridgeline Digital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Kaltura

Risk-Adjusted Performance

Weakest

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

Pair Trading with Bridgeline Digital and Kaltura

The main advantage of trading using opposite Bridgeline Digital and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgeline Digital 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 Bridgeline Digital 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.