Correlation Between Airgain and AAC Technologies
Can any of the company-specific risk be diversified away by investing in both Airgain and AAC Technologies 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 Airgain and AAC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airgain and AAC Technologies Holdings, you can compare the effects of market volatilities on Airgain and AAC Technologies 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 Airgain with a short position of AAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airgain and AAC Technologies.
Diversification Opportunities for Airgain and AAC Technologies
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Airgain and AAC is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Airgain and AAC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Technologies Holdings and Airgain 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 Airgain are associated (or correlated) with AAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Technologies Holdings has no effect on the direction of Airgain i.e., Airgain and AAC Technologies go up and down completely randomly.
Pair Corralation between Airgain and AAC Technologies
Given the investment horizon of 90 days Airgain is expected to generate 2.17 times less return on investment than AAC Technologies. But when comparing it to its historical volatility, Airgain is 1.06 times less risky than AAC Technologies. It trades about 0.06 of its potential returns per unit of risk. AAC Technologies Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 204.00 in AAC Technologies Holdings on November 3, 2024 and sell it today you would earn a total of 258.00 from holding AAC Technologies Holdings or generate 126.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.18% |
| Values | Daily Returns |
Airgain vs. AAC Technologies Holdings
Performance |
| Timeline |
| Airgain |
| AAC Technologies Holdings |
Airgain and AAC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airgain and AAC Technologies
The main advantage of trading using opposite Airgain and AAC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airgain position performs unexpectedly, AAC Technologies 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 AAC Technologies will offset losses from the drop in AAC Technologies' long position.The idea behind Airgain and AAC Technologies Holdings 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.| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. Aerkomm | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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