Correlation Between Radcom and GENERAL
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By analyzing existing cross correlation between Radcom and GENERAL ELEC CAP, you can compare the effects of market volatilities on Radcom and GENERAL 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 Radcom with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radcom and GENERAL.
Diversification Opportunities for Radcom and GENERAL
Significant diversification
The 3 months correlation between Radcom and GENERAL is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP and Radcom 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 Radcom are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Radcom i.e., Radcom and GENERAL go up and down completely randomly.
Pair Corralation between Radcom and GENERAL
Given the investment horizon of 90 days Radcom is expected to generate 1.61 times more return on investment than GENERAL. However, Radcom is 1.61 times more volatile than GENERAL ELEC CAP. It trades about 0.08 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.04 per unit of risk. If you would invest 946.00 in Radcom on September 5, 2024 and sell it today you would earn a total of 243.00 from holding Radcom or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 54.4% |
| Values | Daily Returns |
Radcom vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Radcom |
| GENERAL ELEC CAP |
Radcom and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radcom and GENERAL
The main advantage of trading using opposite Radcom and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radcom position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Radcom vs. Cambium Networks Corp | Radcom vs. Knowles Cor | Radcom vs. Ituran Location and | Radcom vs. ADTRAN Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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