Correlation Between Airgain and Rimini Street
Can any of the company-specific risk be diversified away by investing in both Airgain and Rimini Street 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 Rimini Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airgain and Rimini Street, you can compare the effects of market volatilities on Airgain and Rimini Street 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 Rimini Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airgain and Rimini Street.
Diversification Opportunities for Airgain and Rimini Street
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Airgain and Rimini is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Airgain and Rimini Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimini Street 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 Rimini Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimini Street has no effect on the direction of Airgain i.e., Airgain and Rimini Street go up and down completely randomly.
Pair Corralation between Airgain and Rimini Street
Given the investment horizon of 90 days Airgain is expected to generate 3.14 times less return on investment than Rimini Street. In addition to that, Airgain is 1.35 times more volatile than Rimini Street. It trades about 0.05 of its total potential returns per unit of risk. Rimini Street is currently generating about 0.21 per unit of volatility. If you would invest 253.00 in Rimini Street on November 2, 2024 and sell it today you would earn a total of 39.00 from holding Rimini Street or generate 15.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airgain vs. Rimini Street
Performance |
| Timeline |
| Airgain |
| Rimini Street |
Airgain and Rimini Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airgain and Rimini Street
The main advantage of trading using opposite Airgain and Rimini Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airgain position performs unexpectedly, Rimini Street 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 Rimini Street will offset losses from the drop in Rimini Street's long position.The idea behind Airgain and Rimini Street 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.| Rimini Street vs. Issuer Direct Corp | Rimini Street vs. Cambium Networks Corp | Rimini Street vs. OneSpan | Rimini Street vs. Kiniksa Pharmaceuticals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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