Correlation Between Frequency Electronics and Movano
Can any of the company-specific risk be diversified away by investing in both Frequency Electronics and Movano 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 Movano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Electronics and Movano Inc, you can compare the effects of market volatilities on Frequency Electronics and Movano 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 Movano. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Electronics and Movano.
Diversification Opportunities for Frequency Electronics and Movano
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Frequency and Movano is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Electronics and Movano Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movano Inc 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 Movano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movano Inc has no effect on the direction of Frequency Electronics i.e., Frequency Electronics and Movano go up and down completely randomly.
Pair Corralation between Frequency Electronics and Movano
Given the investment horizon of 90 days Frequency Electronics is expected to under-perform the Movano. But the stock apears to be less risky and, when comparing its historical volatility, Frequency Electronics is 1.82 times less risky than Movano. The stock trades about -0.14 of its potential returns per unit of risk. The Movano Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 540.00 in Movano Inc on November 1, 2024 and sell it today you would lose (19.00) from holding Movano Inc or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frequency Electronics vs. Movano Inc
Performance |
| Timeline |
| Frequency Electronics |
| Movano Inc |
Frequency Electronics and Movano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Electronics and Movano
The main advantage of trading using opposite Frequency Electronics and Movano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Electronics position performs unexpectedly, Movano 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 Movano will offset losses from the drop in Movano's long position.| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Actelis Networks | Frequency Electronics vs. Lantronix | Frequency Electronics vs. KVH Industries |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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