Correlation Between Casa Systems and Aviat Networks
Can any of the company-specific risk be diversified away by investing in both Casa Systems and Aviat Networks 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 Casa Systems and Aviat Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casa Systems and Aviat Networks, you can compare the effects of market volatilities on Casa Systems and Aviat Networks 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 Casa Systems with a short position of Aviat Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casa Systems and Aviat Networks.
Diversification Opportunities for Casa Systems and Aviat Networks
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Casa and Aviat is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Casa Systems and Aviat Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aviat Networks and Casa Systems 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 Casa Systems are associated (or correlated) with Aviat Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aviat Networks has no effect on the direction of Casa Systems i.e., Casa Systems and Aviat Networks go up and down completely randomly.
Pair Corralation between Casa Systems and Aviat Networks
If you would invest 111.00 in Casa Systems on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Casa Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Casa Systems vs. Aviat Networks
Performance |
| Timeline |
| Casa Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aviat Networks |
Casa Systems and Aviat Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casa Systems and Aviat Networks
The main advantage of trading using opposite Casa Systems and Aviat Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casa Systems position performs unexpectedly, Aviat Networks 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 Aviat Networks will offset losses from the drop in Aviat Networks' long position.| Casa Systems vs. ADTRAN Inc | Casa Systems vs. Comtech Telecommunications Corp | Casa Systems vs. Digi International | Casa Systems vs. KVH Industries |
| Aviat Networks vs. AudioCodes | Aviat Networks vs. Silicom | Aviat Networks vs. Akoustis Technologies | Aviat Networks vs. Gilat Satellite Networks |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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