Correlation Between Steel Connect and Airnet Technology
Can any of the company-specific risk be diversified away by investing in both Steel Connect and Airnet Technology 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 Steel Connect and Airnet Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Connect and Airnet Technology, you can compare the effects of market volatilities on Steel Connect and Airnet Technology 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 Steel Connect with a short position of Airnet Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Connect and Airnet Technology.
Diversification Opportunities for Steel Connect and Airnet Technology
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Steel and Airnet is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Steel Connect and Airnet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airnet Technology and Steel Connect 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 Steel Connect are associated (or correlated) with Airnet Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airnet Technology has no effect on the direction of Steel Connect i.e., Steel Connect and Airnet Technology go up and down completely randomly.
Pair Corralation between Steel Connect and Airnet Technology
Given the investment horizon of 90 days Steel Connect is expected to generate 23.95 times less return on investment than Airnet Technology. But when comparing it to its historical volatility, Steel Connect is 3.89 times less risky than Airnet Technology. It trades about 0.02 of its potential returns per unit of risk. Airnet Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Airnet Technology on August 24, 2024 and sell it today you would earn a total of 11.00 from holding Airnet Technology or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steel Connect vs. Airnet Technology
Performance |
| Timeline |
| Steel Connect |
| Airnet Technology |
Steel Connect and Airnet Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Connect and Airnet Technology
The main advantage of trading using opposite Steel Connect and Airnet Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Connect position performs unexpectedly, Airnet Technology 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 Airnet Technology will offset losses from the drop in Airnet Technology's long position.| Steel Connect vs. Baosheng Media Group | Steel Connect vs. Impact Fusion International | Steel Connect vs. Mirriad Advertising plc | Steel Connect vs. CyberAgent ADR |
| Airnet Technology vs. ATIF Holdings | Airnet Technology vs. Mercurity Fintech Holding | Airnet Technology vs. Taoping | Airnet Technology vs. Datasea |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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