Correlation Between Aviat Networks and PowerFleet,

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

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

Diversification Opportunities for Aviat Networks and PowerFleet,

-0.48

Correlation Coefficient

Aviat Networks  PowerFleet,

Very good diversification

The 3 months correlation between Aviat and PowerFleet, is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aviat Networks and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Aviat 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 Aviat Networks are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Aviat Networks i.e., Aviat Networks and PowerFleet, go up and down completely randomly.

Pair Corralation between Aviat Networks and PowerFleet,

Given the investment horizon of 90 days Aviat Networks is expected to under-perform the PowerFleet,. In addition to that, Aviat Networks is 1.15 times more volatile than PowerFleet,. It trades about -0.03 of its total potential returns per unit of risk. PowerFleet, is currently generating about 0.05 per unit of volatility. If you would invest  554.00  in PowerFleet, on October 21, 2024 and sell it today you would earn a total of  50.00  from holding PowerFleet, or generate 9.03% return on investment over 90 days.

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

Aviat Networks  vs.  PowerFleet,

Aviat Networks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aviat Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

PowerFleet,

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aviat Networks and PowerFleet,

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

The idea behind Aviat Networks and PowerFleet, 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.