Correlation Between Actelis Networks and BK Technologies
Can any of the company-specific risk be diversified away by investing in both Actelis Networks and BK 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 BK 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 BK Technologies, you can compare the effects of market volatilities on Actelis Networks and BK 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 BK Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actelis Networks and BK Technologies.
Diversification Opportunities for Actelis Networks and BK Technologies
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Actelis and BKTI is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Actelis Networks and BK Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK Technologies 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 BK Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK Technologies has no effect on the direction of Actelis Networks i.e., Actelis Networks and BK Technologies go up and down completely randomly.
Pair Corralation between Actelis Networks and BK Technologies
Given the investment horizon of 90 days Actelis Networks is expected to generate 10.73 times more return on investment than BK Technologies. However, Actelis Networks is 10.73 times more volatile than BK Technologies. It trades about 0.05 of its potential returns per unit of risk. BK Technologies is currently generating about 0.12 per unit of risk. If you would invest 113.00 in Actelis Networks on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Actelis Networks or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actelis Networks vs. BK Technologies
Performance |
| Timeline |
| Actelis Networks |
| BK Technologies |
Actelis Networks and BK Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actelis Networks and BK Technologies
The main advantage of trading using opposite Actelis Networks and BK Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actelis Networks position performs unexpectedly, BK 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 BK Technologies will offset losses from the drop in BK Technologies' long position.| Actelis Networks vs. ClearOne | Actelis Networks vs. Siyata Mobile | Actelis Networks vs. SatixFy Communications | Actelis Networks vs. Optical Cable |
| BK Technologies vs. Frequency Electronics | BK Technologies vs. Actelis Networks | BK Technologies vs. Optical Cable | BK Technologies vs. Baylin Technologies |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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