Correlation Between Airgain and Calix
Can any of the company-specific risk be diversified away by investing in both Airgain and Calix 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 Calix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airgain and Calix Inc, you can compare the effects of market volatilities on Airgain and Calix 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 Calix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airgain and Calix.
Diversification Opportunities for Airgain and Calix
Very good diversification
The 3 months correlation between Airgain and Calix is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Airgain and Calix Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calix Inc 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 Calix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calix Inc has no effect on the direction of Airgain i.e., Airgain and Calix go up and down completely randomly.
Pair Corralation between Airgain and Calix
Given the investment horizon of 90 days Airgain is expected to generate 1.55 times more return on investment than Calix. However, Airgain is 1.55 times more volatile than Calix Inc. It trades about 0.03 of its potential returns per unit of risk. Calix Inc is currently generating about -0.04 per unit of risk. If you would invest 756.00 in Airgain on August 24, 2024 and sell it today you would earn a total of 139.00 from holding Airgain or generate 18.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airgain vs. Calix Inc
Performance |
| Timeline |
| Airgain |
| Calix Inc |
Airgain and Calix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airgain and Calix
The main advantage of trading using opposite Airgain and Calix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airgain position performs unexpectedly, Calix 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 Calix will offset losses from the drop in Calix's long position.| Airgain vs. Hewlett Packard Enterprise | Airgain vs. Juniper Networks | Airgain vs. Cisco Systems | Airgain vs. Viavi Solutions |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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