Correlation Between Gilat Satellite and Akoustis Technologies
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Akoustis Technologies 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 Gilat Satellite and Akoustis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilat Satellite Networks and Akoustis Technologies, you can compare the effects of market volatilities on Gilat Satellite and Akoustis Technologies 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 Gilat Satellite with a short position of Akoustis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Akoustis Technologies.
Diversification Opportunities for Gilat Satellite and Akoustis Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gilat and Akoustis is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Akoustis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoustis Technologies and Gilat Satellite 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 Gilat Satellite Networks are associated (or correlated) with Akoustis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoustis Technologies has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Akoustis Technologies go up and down completely randomly.
Pair Corralation between Gilat Satellite and Akoustis Technologies
Given the investment horizon of 90 days Gilat Satellite Networks is expected to generate 0.25 times more return on investment than Akoustis Technologies. However, Gilat Satellite Networks is 3.98 times less risky than Akoustis Technologies. It trades about 0.01 of its potential returns per unit of risk. Akoustis Technologies is currently generating about -0.04 per unit of risk. If you would invest 563.00 in Gilat Satellite Networks on August 28, 2024 and sell it today you would lose (8.00) from holding Gilat Satellite Networks or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Akoustis Technologies
Performance |
| Timeline |
| Gilat Satellite Networks |
| Akoustis Technologies |
Gilat Satellite and Akoustis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Akoustis Technologies
The main advantage of trading using opposite Gilat Satellite and Akoustis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Akoustis Technologies 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 Akoustis Technologies will offset losses from the drop in Akoustis Technologies' long position.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
| Akoustis Technologies vs. Aviat Networks | Akoustis Technologies vs. AudioCodes | Akoustis Technologies vs. Silicom | Akoustis Technologies 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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