Correlation Between Ituran Location and Airgain
Can any of the company-specific risk be diversified away by investing in both Ituran Location 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 Ituran Location and Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ituran Location and and Airgain, you can compare the effects of market volatilities on Ituran Location 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 Ituran Location with a short position of Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ituran Location and Airgain.
Diversification Opportunities for Ituran Location and Airgain
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ituran and Airgain is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ituran Location and and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and Ituran Location 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 Ituran Location and 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 Ituran Location i.e., Ituran Location and Airgain go up and down completely randomly.
Pair Corralation between Ituran Location and Airgain
Given the investment horizon of 90 days Ituran Location is expected to generate 2.72 times less return on investment than Airgain. But when comparing it to its historical volatility, Ituran Location and is 2.83 times less risky than Airgain. It trades about 0.05 of its potential returns per unit of risk. Airgain is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 588.00 in Airgain on September 2, 2024 and sell it today you would earn a total of 299.00 from holding Airgain or generate 50.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ituran Location and vs. Airgain
Performance |
| Timeline |
| Ituran Location |
| Airgain |
Ituran Location and Airgain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ituran Location and Airgain
The main advantage of trading using opposite Ituran Location and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ituran Location 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.| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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