Correlation Between Actelis Networks and CalAmp Corp

Can any of the company-specific risk be diversified away by investing in both Actelis Networks and CalAmp Corp 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 Actelis Networks and CalAmp Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Actelis Networks and CalAmp Corp, you can compare the effects of market volatilities on Actelis Networks and CalAmp Corp 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 Actelis Networks with a short position of CalAmp Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actelis Networks and CalAmp Corp.

Diversification Opportunities for Actelis Networks and CalAmp Corp

-0.2

Correlation Coefficient

Actelis Networks  CalAmp Corp

Good diversification

The 3 months correlation between Actelis and CalAmp is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Actelis Networks and CalAmp Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CalAmp Corp and Actelis Networks 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 Actelis Networks are associated (or correlated) with CalAmp Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CalAmp Corp has no effect on the direction of Actelis Networks i.e., Actelis Networks and CalAmp Corp go up and down completely randomly.

Pair Corralation between Actelis Networks and CalAmp Corp

Given the investment horizon of 90 days Actelis Networks is expected to under-perform the CalAmp Corp. In addition to that, Actelis Networks is 1.51 times more volatile than CalAmp Corp. It trades about -0.22 of its total potential returns per unit of risk. CalAmp Corp is currently generating about 0.15 per unit of volatility. If you would invest  294.00  in CalAmp Corp on February 2, 2024 and sell it today you would earn a total of  50.00  from holding CalAmp Corp or generate 17.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Actelis Networks  vs.  CalAmp Corp

Actelis Networks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Actelis Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CalAmp Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CalAmp Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain primary indicators, CalAmp Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Actelis Networks and CalAmp Corp

The main advantage of trading using opposite Actelis Networks and CalAmp Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actelis Networks position performs unexpectedly, CalAmp Corp 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 CalAmp Corp will offset losses from the drop in CalAmp Corp's long position.

The idea behind Actelis Networks and CalAmp Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.