Correlation Between Aerkomm and Actelis Networks

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

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

Diversification Opportunities for Aerkomm and Actelis Networks

0.0

Correlation Coefficient

Aerkomm  Actelis Networks

Pay attention - limited upside

The 3 months correlation between Aerkomm and Actelis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aerkomm and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks and Aerkomm 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 Aerkomm are associated (or correlated) with Actelis Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actelis Networks has no effect on the direction of Aerkomm i.e., Aerkomm and Actelis Networks go up and down completely randomly.

Pair Corralation between Aerkomm and Actelis Networks

If you would invest  258.00  in Aerkomm on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Aerkomm or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.85%
Values	Daily Returns

Aerkomm  vs.  Actelis Networks

Aerkomm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aerkomm has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Aerkomm is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Actelis Networks

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Aerkomm and Actelis Networks

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

The idea behind Aerkomm and Actelis Networks 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.