Correlation Between TPT Global and Airgain
Can any of the company-specific risk be diversified away by investing in both TPT Global and Airgain 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 TPT Global and Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPT Global Tech and Airgain, you can compare the effects of market volatilities on TPT Global and Airgain 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 TPT Global with a short position of Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPT Global and Airgain.
Diversification Opportunities for TPT Global and Airgain
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TPT and Airgain is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding TPT Global Tech and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and TPT Global 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 TPT Global Tech are associated (or correlated) with Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of TPT Global i.e., TPT Global and Airgain go up and down completely randomly.
Pair Corralation between TPT Global and Airgain
Given the investment horizon of 90 days TPT Global Tech is expected to generate 10.99 times more return on investment than Airgain. However, TPT Global is 10.99 times more volatile than Airgain. It trades about 0.06 of its potential returns per unit of risk. Airgain is currently generating about -0.05 per unit of risk. If you would invest 0.02 in TPT Global Tech on September 1, 2024 and sell it today you would lose (0.01) from holding TPT Global Tech or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
TPT Global Tech vs. Airgain
Performance |
| Timeline |
| TPT Global Tech |
| Airgain |
TPT Global and Airgain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPT Global and Airgain
The main advantage of trading using opposite TPT Global and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPT Global position performs unexpectedly, Airgain 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 Airgain will offset losses from the drop in Airgain's long position.| TPT Global vs. Franklin Wireless Corp | TPT Global vs. Wialan Technologies | TPT Global vs. Moving iMage Technologies | TPT Global vs. Comtech Telecommunications Corp |
| Airgain vs. Cps Technologies | Airgain vs. Akoustis Technologies | Airgain vs. Cambium Networks Corp | Airgain vs. Ceragon Networks |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |