Correlation Between Knowles Cor and Actelis Networks
Can any of the company-specific risk be diversified away by investing in both Knowles Cor 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 Knowles Cor and Actelis Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and Actelis Networks, you can compare the effects of market volatilities on Knowles Cor 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 Knowles Cor with a short position of Actelis Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and Actelis Networks.
Diversification Opportunities for Knowles Cor and Actelis Networks
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Knowles and Actelis is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks and Knowles Cor 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 Knowles Cor 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 Knowles Cor i.e., Knowles Cor and Actelis Networks go up and down completely randomly.
Pair Corralation between Knowles Cor and Actelis Networks
Allowing for the 90-day total investment horizon Knowles Cor is expected to generate 0.82 times more return on investment than Actelis Networks. However, Knowles Cor is 1.22 times less risky than Actelis Networks. It trades about 0.13 of its potential returns per unit of risk. Actelis Networks is currently generating about -0.06 per unit of risk. If you would invest 1,809 in Knowles Cor on August 28, 2024 and sell it today you would earn a total of 119.00 from holding Knowles Cor or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knowles Cor vs. Actelis Networks
Performance |
| Timeline |
| Knowles Cor |
| Actelis Networks |
Knowles Cor and Actelis Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and Actelis Networks
The main advantage of trading using opposite Knowles Cor and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor 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.The idea behind Knowles Cor and Actelis Networks pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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