Correlation Between Aerkomm and Frequency Electronics
Can any of the company-specific risk be diversified away by investing in both Aerkomm and Frequency Electronics 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 Aerkomm and Frequency Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerkomm and Frequency Electronics, you can compare the effects of market volatilities on Aerkomm and Frequency Electronics 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 Aerkomm with a short position of Frequency Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerkomm and Frequency Electronics.
Diversification Opportunities for Aerkomm and Frequency Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aerkomm and Frequency is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aerkomm and Frequency Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequency Electronics and Aerkomm 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 Aerkomm are associated (or correlated) with Frequency Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequency Electronics has no effect on the direction of Aerkomm i.e., Aerkomm and Frequency Electronics go up and down completely randomly.
Pair Corralation between Aerkomm and Frequency Electronics
If you would invest 1,268 in Frequency Electronics on August 31, 2024 and sell it today you would earn a total of 121.00 from holding Frequency Electronics or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerkomm vs. Frequency Electronics
Performance |
| Timeline |
| Aerkomm |
| Frequency Electronics |
Aerkomm and Frequency Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerkomm and Frequency Electronics
The main advantage of trading using opposite Aerkomm and Frequency Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerkomm position performs unexpectedly, Frequency Electronics 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 Frequency Electronics will offset losses from the drop in Frequency Electronics' long position.| Aerkomm vs. AmpliTech Group | Aerkomm vs. AAP Inc | Aerkomm vs. Airgain | Aerkomm vs. AAC Technologies Holdings |
| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Actelis Networks | Frequency Electronics vs. Lantronix | Frequency Electronics vs. KVH Industries |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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