Correlation Between Optical Cable and Aerkomm
Can any of the company-specific risk be diversified away by investing in both Optical Cable and Aerkomm 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 Optical Cable and Aerkomm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optical Cable and Aerkomm, you can compare the effects of market volatilities on Optical Cable and Aerkomm 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 Optical Cable with a short position of Aerkomm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optical Cable and Aerkomm.
Diversification Opportunities for Optical Cable and Aerkomm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Optical and Aerkomm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Optical Cable and Aerkomm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerkomm and Optical Cable 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 Optical Cable are associated (or correlated) with Aerkomm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerkomm has no effect on the direction of Optical Cable i.e., Optical Cable and Aerkomm go up and down completely randomly.
Pair Corralation between Optical Cable and Aerkomm
If you would invest 332.00 in Optical Cable on October 23, 2024 and sell it today you would earn a total of 146.00 from holding Optical Cable or generate 43.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Optical Cable vs. Aerkomm
Performance |
| Timeline |
| Optical Cable |
| Aerkomm |
Optical Cable and Aerkomm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optical Cable and Aerkomm
The main advantage of trading using opposite Optical Cable and Aerkomm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optical Cable position performs unexpectedly, Aerkomm 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 Aerkomm will offset losses from the drop in Aerkomm's long position.| Optical Cable vs. KVH Industries | Optical Cable vs. Knowles Cor | Optical Cable vs. Comtech Telecommunications Corp | Optical Cable vs. Lantronix |
| Aerkomm vs. AmpliTech Group | Aerkomm vs. AAP Inc | Aerkomm vs. Airgain | Aerkomm vs. AAC Technologies Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |