Correlation Between Optical Cable and SatixFy Communications
Can any of the company-specific risk be diversified away by investing in both Optical Cable and SatixFy 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 Optical Cable and SatixFy Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optical Cable and SatixFy Communications, you can compare the effects of market volatilities on Optical Cable and SatixFy 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 Optical Cable with a short position of SatixFy Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optical Cable and SatixFy Communications.
Diversification Opportunities for Optical Cable and SatixFy Communications
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optical and SatixFy is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Optical Cable and SatixFy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SatixFy Communications 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 SatixFy Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SatixFy Communications has no effect on the direction of Optical Cable i.e., Optical Cable and SatixFy Communications go up and down completely randomly.
Pair Corralation between Optical Cable and SatixFy Communications
Considering the 90-day investment horizon Optical Cable is expected to generate 6.35 times more return on investment than SatixFy Communications. However, Optical Cable is 6.35 times more volatile than SatixFy Communications. It trades about 0.04 of its potential returns per unit of risk. SatixFy Communications is currently generating about -0.02 per unit of risk. If you would invest 404.00 in Optical Cable on August 31, 2024 and sell it today you would lose (171.00) from holding Optical Cable or give up 42.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Optical Cable vs. SatixFy Communications
Performance |
| Timeline |
| Optical Cable |
| SatixFy Communications |
Optical Cable and SatixFy Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optical Cable and SatixFy Communications
The main advantage of trading using opposite Optical Cable and SatixFy Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optical Cable position performs unexpectedly, SatixFy 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 SatixFy Communications will offset losses from the drop in SatixFy Communications' long position.| Optical Cable vs. KVH Industries | Optical Cable vs. Knowles Cor | Optical Cable vs. Comtech Telecommunications Corp | Optical Cable vs. Lantronix |
| SatixFy Communications vs. Actelis Networks | SatixFy Communications vs. ClearOne | SatixFy Communications vs. Siyata Mobile | SatixFy Communications vs. Mobilicom Limited Warrants |
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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