Correlation Between Airgain and Quarterhill
Can any of the company-specific risk be diversified away by investing in both Airgain and Quarterhill 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 Quarterhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airgain and Quarterhill, you can compare the effects of market volatilities on Airgain and Quarterhill 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 Quarterhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airgain and Quarterhill.
Diversification Opportunities for Airgain and Quarterhill
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Airgain and Quarterhill is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Airgain and Quarterhill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quarterhill 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 Quarterhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quarterhill has no effect on the direction of Airgain i.e., Airgain and Quarterhill go up and down completely randomly.
Pair Corralation between Airgain and Quarterhill
If you would invest 713.00 in Airgain on October 23, 2024 and sell it today you would earn a total of 58.00 from holding Airgain or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Airgain vs. Quarterhill
Performance |
| Timeline |
| Airgain |
| Quarterhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Airgain and Quarterhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airgain and Quarterhill
The main advantage of trading using opposite Airgain and Quarterhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airgain position performs unexpectedly, Quarterhill 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 Quarterhill will offset losses from the drop in Quarterhill's long position.The idea behind Airgain and Quarterhill 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.| Quarterhill vs. Edgewater Wireless Systems | Quarterhill vs. Airgain | Quarterhill vs. Optical Cable | Quarterhill vs. Lantronix |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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