Correlation Between Actelis Networks and Ondas Holdings
Can any of the company-specific risk be diversified away by investing in both Actelis Networks and Ondas Holdings 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 Ondas Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actelis Networks and Ondas Holdings, you can compare the effects of market volatilities on Actelis Networks and Ondas Holdings 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 Ondas Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actelis Networks and Ondas Holdings.
Diversification Opportunities for Actelis Networks and Ondas Holdings
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Actelis and Ondas is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Actelis Networks and Ondas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ondas Holdings 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 Ondas Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ondas Holdings has no effect on the direction of Actelis Networks i.e., Actelis Networks and Ondas Holdings go up and down completely randomly.
Pair Corralation between Actelis Networks and Ondas Holdings
Given the investment horizon of 90 days Actelis Networks is expected to generate 13.25 times less return on investment than Ondas Holdings. But when comparing it to its historical volatility, Actelis Networks is 1.66 times less risky than Ondas Holdings. It trades about 0.03 of its potential returns per unit of risk. Ondas Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 93.00 in Ondas Holdings on October 10, 2024 and sell it today you would earn a total of 161.00 from holding Ondas Holdings or generate 173.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Actelis Networks vs. Ondas Holdings
Performance |
Timeline |
Actelis Networks |
Ondas Holdings |
Actelis Networks and Ondas Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Actelis Networks and Ondas Holdings
The main advantage of trading using opposite Actelis Networks and Ondas Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actelis Networks position performs unexpectedly, Ondas Holdings 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 Ondas Holdings will offset losses from the drop in Ondas Holdings' long position.Actelis Networks vs. ClearOne | Actelis Networks vs. Siyata Mobile | Actelis Networks vs. SatixFy Communications | Actelis Networks vs. Optical Cable |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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