Correlation Between Telesat Corp and Airgain
Can any of the company-specific risk be diversified away by investing in both Telesat Corp 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 Telesat Corp and Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telesat Corp and Airgain, you can compare the effects of market volatilities on Telesat Corp 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 Telesat Corp with a short position of Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telesat Corp and Airgain.
Diversification Opportunities for Telesat Corp and Airgain
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telesat and Airgain is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Telesat Corp and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and Telesat Corp 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 Telesat Corp 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 Telesat Corp i.e., Telesat Corp and Airgain go up and down completely randomly.
Pair Corralation between Telesat Corp and Airgain
Given the investment horizon of 90 days Telesat Corp is expected to generate 1.15 times more return on investment than Airgain. However, Telesat Corp is 1.15 times more volatile than Airgain. It trades about 0.08 of its potential returns per unit of risk. Airgain is currently generating about 0.06 per unit of risk. If you would invest 975.00 in Telesat Corp on November 3, 2024 and sell it today you would earn a total of 868.00 from holding Telesat Corp or generate 89.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telesat Corp vs. Airgain
Performance |
| Timeline |
| Telesat Corp |
| Airgain |
Telesat Corp and Airgain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telesat Corp and Airgain
The main advantage of trading using opposite Telesat Corp and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telesat Corp 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.| Telesat Corp vs. KVH Industries | Telesat Corp vs. Comtech Telecommunications Corp | Telesat Corp vs. Knowles Cor | Telesat Corp vs. Ituran Location and |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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