Correlation Between CommScope Holding and Airgain
Can any of the company-specific risk be diversified away by investing in both CommScope Holding and Airgain 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 CommScope Holding and Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CommScope Holding Co and Airgain, you can compare the effects of market volatilities on CommScope Holding and Airgain 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 CommScope Holding with a short position of Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of CommScope Holding and Airgain.
Diversification Opportunities for CommScope Holding and Airgain
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CommScope and Airgain is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CommScope Holding Co and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and CommScope Holding 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 CommScope Holding Co are associated (or correlated) with Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of CommScope Holding i.e., CommScope Holding and Airgain go up and down completely randomly.
Pair Corralation between CommScope Holding and Airgain
Given the investment horizon of 90 days CommScope Holding Co is expected to under-perform the Airgain. In addition to that, CommScope Holding is 2.24 times more volatile than Airgain. It trades about -0.15 of its total potential returns per unit of risk. Airgain is currently generating about -0.09 per unit of volatility. If you would invest 967.00 in Airgain on August 28, 2024 and sell it today you would lose (68.00) from holding Airgain or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CommScope Holding Co vs. Airgain
Performance |
| Timeline |
| CommScope Holding |
| Airgain |
CommScope Holding and Airgain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CommScope Holding and Airgain
The main advantage of trading using opposite CommScope Holding and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CommScope Holding position performs unexpectedly, Airgain 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 Airgain will offset losses from the drop in Airgain's long position.| CommScope Holding vs. Harmonic | CommScope Holding vs. NETGEAR | CommScope Holding vs. Comtech Telecommunications Corp | CommScope Holding vs. ADTRAN Inc |
| Airgain vs. Cps Technologies | Airgain vs. Akoustis Technologies | Airgain vs. Cambium Networks Corp | Airgain vs. Ceragon 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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