Correlation Between Frequency Electronics and Aerkomm
Can any of the company-specific risk be diversified away by investing in both Frequency Electronics and Aerkomm 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 Frequency Electronics and Aerkomm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Electronics and Aerkomm, you can compare the effects of market volatilities on Frequency Electronics and Aerkomm 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 Frequency Electronics with a short position of Aerkomm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Electronics and Aerkomm.
Diversification Opportunities for Frequency Electronics and Aerkomm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Frequency and Aerkomm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Electronics and Aerkomm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerkomm and Frequency Electronics 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 Frequency Electronics are associated (or correlated) with Aerkomm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerkomm has no effect on the direction of Frequency Electronics i.e., Frequency Electronics and Aerkomm go up and down completely randomly.
Pair Corralation between Frequency Electronics and Aerkomm
If you would invest 1,268 in Frequency Electronics on August 31, 2024 and sell it today you would earn a total of 121.00 from holding Frequency Electronics or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frequency Electronics vs. Aerkomm
Performance |
| Timeline |
| Frequency Electronics |
| Aerkomm |
Frequency Electronics and Aerkomm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Electronics and Aerkomm
The main advantage of trading using opposite Frequency Electronics and Aerkomm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Electronics position performs unexpectedly, Aerkomm 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 Aerkomm will offset losses from the drop in Aerkomm's long position.| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Actelis Networks | Frequency Electronics vs. Lantronix | Frequency Electronics vs. KVH Industries |
| Aerkomm vs. AmpliTech Group | Aerkomm vs. AAP Inc | Aerkomm vs. Airgain | Aerkomm vs. AAC Technologies Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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