Correlation Between Actelis Networks and Arteris

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

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

Diversification Opportunities for Actelis Networks and Arteris

-0.71

Correlation Coefficient

Actelis Networks  Arteris

Pay attention - limited upside

The 3 months correlation between Actelis and Arteris is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Actelis Networks and Arteris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arteris 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 Arteris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arteris has no effect on the direction of Actelis Networks i.e., Actelis Networks and Arteris go up and down completely randomly.

Pair Corralation between Actelis Networks and Arteris

Given the investment horizon of 90 days Actelis Networks is expected to generate 7.23 times more return on investment than Arteris. However, Actelis Networks is 7.23 times more volatile than Arteris. It trades about 0.04 of its potential returns per unit of risk. Arteris is currently generating about 0.06 per unit of risk. If you would invest  485.00  in Actelis Networks on October 4, 2024 and sell it today you would lose (351.00) from holding Actelis Networks or give up 72.37% of portfolio value over 90 days.

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

Actelis Networks  vs.  Arteris

Actelis Networks

Risk-Adjusted Performance

6 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Actelis Networks are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Actelis Networks unveiled solid returns over the last few months and may actually be approaching a breakup point.

Arteris

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Arteris are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Arteris reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Actelis Networks and Arteris

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

The idea behind Actelis Networks and Arteris 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.