Correlation Between AAC Technologies and Airgain
Can any of the company-specific risk be diversified away by investing in both AAC Technologies and Airgain 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 AAC Technologies and Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC Technologies Holdings and Airgain, you can compare the effects of market volatilities on AAC Technologies and Airgain 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 AAC Technologies with a short position of Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Technologies and Airgain.
Diversification Opportunities for AAC Technologies and Airgain
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AAC and Airgain is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding AAC Technologies Holdings and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and AAC Technologies 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 AAC Technologies Holdings are associated (or correlated) with Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of AAC Technologies i.e., AAC Technologies and Airgain go up and down completely randomly.
Pair Corralation between AAC Technologies and Airgain
Assuming the 90 days horizon AAC Technologies is expected to generate 1.23 times less return on investment than Airgain. But when comparing it to its historical volatility, AAC Technologies Holdings is 1.09 times less risky than Airgain. It trades about 0.1 of its potential returns per unit of risk. Airgain is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 454.00 in Airgain on September 1, 2024 and sell it today you would earn a total of 433.00 from holding Airgain or generate 95.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
AAC Technologies Holdings vs. Airgain
Performance |
| Timeline |
| AAC Technologies Holdings |
| Airgain |
AAC Technologies and Airgain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Technologies and Airgain
The main advantage of trading using opposite AAC Technologies and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Technologies position performs unexpectedly, Airgain 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 Airgain will offset losses from the drop in Airgain's long position.| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech Group |
| Airgain vs. Cps Technologies | Airgain vs. Akoustis Technologies | Airgain vs. Cambium Networks Corp | Airgain vs. Ceragon Networks |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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