Correlation Between Atkore International and RF Industries
Can any of the company-specific risk be diversified away by investing in both Atkore International and RF Industries 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 Atkore International and RF Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atkore International Group and RF Industries, you can compare the effects of market volatilities on Atkore International and RF Industries 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 Atkore International with a short position of RF Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atkore International and RF Industries.
Diversification Opportunities for Atkore International and RF Industries
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atkore and RFIL is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Atkore International Group and RF Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Industries and Atkore International 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 Atkore International Group are associated (or correlated) with RF Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Industries has no effect on the direction of Atkore International i.e., Atkore International and RF Industries go up and down completely randomly.
Pair Corralation between Atkore International and RF Industries
Given the investment horizon of 90 days Atkore International Group is expected to under-perform the RF Industries. But the stock apears to be less risky and, when comparing its historical volatility, Atkore International Group is 1.06 times less risky than RF Industries. The stock trades about -0.05 of its potential returns per unit of risk. The RF Industries is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 388.00 in RF Industries on August 25, 2024 and sell it today you would earn a total of 19.00 from holding RF Industries or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atkore International Group vs. RF Industries
Performance |
| Timeline |
| Atkore International |
| RF Industries |
Atkore International and RF Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atkore International and RF Industries
The main advantage of trading using opposite Atkore International and RF Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atkore International position performs unexpectedly, RF Industries 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 RF Industries will offset losses from the drop in RF Industries' long position.| Atkore International vs. Hubbell | Atkore International vs. Enersys | Atkore International vs. Advanced Energy Industries | Atkore International vs. nVent Electric PLC |
| RF Industries vs. Nortech Systems Incorporated | RF Industries vs. Richardson Electronics | RF Industries vs. AstroNova |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |