Correlation Between Actelis Networks and AAC Technologies
Can any of the company-specific risk be diversified away by investing in both Actelis Networks and AAC Technologies 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 Actelis Networks and AAC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actelis Networks and AAC Technologies Holdings, you can compare the effects of market volatilities on Actelis Networks and AAC Technologies 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 Actelis Networks with a short position of AAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actelis Networks and AAC Technologies.
Diversification Opportunities for Actelis Networks and AAC Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Actelis and AAC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Actelis Networks and AAC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Technologies Holdings and Actelis Networks 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 Actelis Networks are associated (or correlated) with AAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Technologies Holdings has no effect on the direction of Actelis Networks i.e., Actelis Networks and AAC Technologies go up and down completely randomly.
Pair Corralation between Actelis Networks and AAC Technologies
Given the investment horizon of 90 days Actelis Networks is expected to generate 15.3 times more return on investment than AAC Technologies. However, Actelis Networks is 15.3 times more volatile than AAC Technologies Holdings. It trades about 0.06 of its potential returns per unit of risk. AAC Technologies Holdings is currently generating about 0.1 per unit of risk. If you would invest 108.00 in Actelis Networks on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Actelis Networks or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Actelis Networks vs. AAC Technologies Holdings
Performance |
| Timeline |
| Actelis Networks |
| AAC Technologies Holdings |
Actelis Networks and AAC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actelis Networks and AAC Technologies
The main advantage of trading using opposite Actelis Networks and AAC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actelis Networks position performs unexpectedly, AAC Technologies 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 AAC Technologies will offset losses from the drop in AAC Technologies' long position.| Actelis Networks vs. ClearOne | Actelis Networks vs. Siyata Mobile | Actelis Networks vs. SatixFy Communications | Actelis Networks vs. Optical Cable |
| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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