Correlation Between Actelis Networks and Iteris

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

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

Diversification Opportunities for Actelis Networks and Iteris

0.0

Correlation Coefficient

Actelis Networks  Iteris

Pay attention - limited upside

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

Pair Corralation between Actelis Networks and Iteris

If you would invest  119.00  in Actelis Networks on November 20, 2024 and sell it today you would earn a total of  2.00  from holding Actelis Networks or generate 1.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Actelis Networks  vs.  Iteris Inc

Actelis Networks

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Actelis Networks are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Actelis Networks may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Iteris Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Iteris Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Iteris is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Actelis Networks and Iteris

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

The idea behind Actelis Networks and Iteris Inc 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.