Correlation Between H-D International and Actelis Networks
Can any of the company-specific risk be diversified away by investing in both H-D International and Actelis Networks 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 H-D International and Actelis Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H D International Holdings and Actelis Networks, you can compare the effects of market volatilities on H-D International and Actelis Networks 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 H-D International with a short position of Actelis Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of H-D International and Actelis Networks.
Diversification Opportunities for H-D International and Actelis Networks
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between H-D and Actelis is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding H D International Holdings and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks and H-D International 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 H D International Holdings are associated (or correlated) with Actelis Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actelis Networks has no effect on the direction of H-D International i.e., H-D International and Actelis Networks go up and down completely randomly.
Pair Corralation between H-D International and Actelis Networks
Given the investment horizon of 90 days H-D International is expected to generate 4.99 times less return on investment than Actelis Networks. But when comparing it to its historical volatility, H D International Holdings is 6.07 times less risky than Actelis Networks. It trades about 0.06 of its potential returns per unit of risk. Actelis Networks is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 122.00 in Actelis Networks on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Actelis Networks or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
H D International Holdings vs. Actelis Networks
Performance |
| Timeline |
| H D International |
| Actelis Networks |
H-D International and Actelis Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H-D International and Actelis Networks
The main advantage of trading using opposite H-D International and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H-D International position performs unexpectedly, Actelis Networks 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 Actelis Networks will offset losses from the drop in Actelis Networks' long position.| H-D International vs. Actelis Networks | H-D International vs. ClearOne | H-D International vs. Siyata Mobile | H-D International vs. SatixFy Communications |
| Actelis Networks vs. ClearOne | Actelis Networks vs. Siyata Mobile | Actelis Networks vs. SatixFy Communications | Actelis Networks vs. Optical Cable |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |