Correlation Between Airnet Technology and Steel Connect
Can any of the company-specific risk be diversified away by investing in both Airnet Technology and Steel Connect 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 Airnet Technology and Steel Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airnet Technology and Steel Connect, you can compare the effects of market volatilities on Airnet Technology and Steel Connect 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 Airnet Technology with a short position of Steel Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airnet Technology and Steel Connect.
Diversification Opportunities for Airnet Technology and Steel Connect
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Airnet and Steel is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Airnet Technology and Steel Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Connect and Airnet Technology 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 Airnet Technology are associated (or correlated) with Steel Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Connect has no effect on the direction of Airnet Technology i.e., Airnet Technology and Steel Connect go up and down completely randomly.
Pair Corralation between Airnet Technology and Steel Connect
Given the investment horizon of 90 days Airnet Technology is expected to generate 3.89 times more return on investment than Steel Connect. However, Airnet Technology is 3.89 times more volatile than Steel Connect. It trades about 0.15 of its potential returns per unit of risk. Steel Connect is currently generating about 0.02 per unit of risk. If you would invest 38.00 in Airnet Technology on August 24, 2024 and sell it today you would earn a total of 11.00 from holding Airnet Technology or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airnet Technology vs. Steel Connect
Performance |
| Timeline |
| Airnet Technology |
| Steel Connect |
Airnet Technology and Steel Connect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airnet Technology and Steel Connect
The main advantage of trading using opposite Airnet Technology and Steel Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airnet Technology position performs unexpectedly, Steel Connect 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 Steel Connect will offset losses from the drop in Steel Connect's long position.| Airnet Technology vs. ATIF Holdings | Airnet Technology vs. Mercurity Fintech Holding | Airnet Technology vs. Taoping | Airnet Technology vs. Datasea |
| Steel Connect vs. Baosheng Media Group | Steel Connect vs. Impact Fusion International | Steel Connect vs. Mirriad Advertising plc | Steel Connect vs. CyberAgent ADR |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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