Correlation Between KORE Group and Altigen Communications
Can any of the company-specific risk be diversified away by investing in both KORE Group and Altigen Communications 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 KORE Group and Altigen Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KORE Group Holdings and Altigen Communications, you can compare the effects of market volatilities on KORE Group and Altigen Communications 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 KORE Group with a short position of Altigen Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Group and Altigen Communications.
Diversification Opportunities for KORE Group and Altigen Communications
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KORE and Altigen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding KORE Group Holdings and Altigen Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altigen Communications and KORE Group 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 KORE Group Holdings are associated (or correlated) with Altigen Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altigen Communications has no effect on the direction of KORE Group i.e., KORE Group and Altigen Communications go up and down completely randomly.
Pair Corralation between KORE Group and Altigen Communications
If you would invest 55.00 in Altigen Communications on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Altigen Communications or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
KORE Group Holdings vs. Altigen Communications
Performance |
| Timeline |
| KORE Group Holdings |
| Altigen Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KORE Group and Altigen Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORE Group and Altigen Communications
The main advantage of trading using opposite KORE Group and Altigen Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Group position performs unexpectedly, Altigen Communications 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 Altigen Communications will offset losses from the drop in Altigen Communications' long position.| KORE Group vs. Liberty Broadband Srs | KORE Group vs. Cable One | KORE Group vs. Liberty Broadband Corp | KORE Group vs. Telkom Indonesia Tbk |
| Altigen Communications vs. Aware Inc | Altigen Communications vs. Integrated Ventures | Altigen Communications vs. AudioCodes |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |