Correlation Between Calix and PowerFleet,

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

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

Diversification Opportunities for Calix and PowerFleet,

0.07

Correlation Coefficient

Calix  PowerFleet,

Significant diversification

The 3 months correlation between Calix and PowerFleet, is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Calix Inc and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Calix 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 Calix Inc 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 Calix i.e., Calix and PowerFleet, go up and down completely randomly.

Pair Corralation between Calix and PowerFleet,

Given the investment horizon of 90 days Calix Inc is expected to under-perform the PowerFleet,. But the stock apears to be less risky and, when comparing its historical volatility, Calix Inc is 4.82 times less risky than PowerFleet,. The stock trades about -0.19 of its potential returns per unit of risk. The PowerFleet, is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  595.00  in PowerFleet, on December 3, 2024 and sell it today you would earn a total of  110.00  from holding PowerFleet, or generate 18.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Calix Inc  vs.  PowerFleet,

Calix Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calix Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Calix may actually be approaching a critical reversion point that can send shares even higher in April 2025.

PowerFleet,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, PowerFleet, is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Calix and PowerFleet,

The main advantage of trading using opposite Calix and PowerFleet, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calix 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 Calix Inc 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.