Correlation Between Casa Systems and Iteris
Can any of the company-specific risk be diversified away by investing in both Casa Systems and Iteris 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 Iteris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casa Systems and Iteris Inc, you can compare the effects of market volatilities on Casa Systems and Iteris 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 Iteris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casa Systems and Iteris.
Diversification Opportunities for Casa Systems and Iteris
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Casa and Iteris is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Casa Systems and Iteris Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iteris Inc 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 Iteris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iteris Inc has no effect on the direction of Casa Systems i.e., Casa Systems and Iteris go up and down completely randomly.
Pair Corralation between Casa Systems and Iteris
If you would invest 22,640 in Iteris Inc on September 1, 2024 and sell it today you would earn a total of 4,009 from holding Iteris Inc or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 14.29% |
| Values | Daily Returns |
Casa Systems vs. Iteris Inc
Performance |
| Timeline |
| Casa Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Iteris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Casa Systems and Iteris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casa Systems and Iteris
The main advantage of trading using opposite Casa Systems and Iteris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casa Systems position performs unexpectedly, Iteris 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 Iteris will offset losses from the drop in Iteris' long position.| Casa Systems vs. ADTRAN Inc | Casa Systems vs. Comtech Telecommunications Corp | Casa Systems vs. Digi International | Casa Systems vs. KVH Industries |
| Iteris vs. Optical Cable | Iteris vs. KVH Industries | Iteris vs. Knowles Cor | Iteris vs. Comtech Telecommunications Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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