Correlation Between Calix and Airgain

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

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

Diversification Opportunities for Calix and Airgain

0.59

Correlation Coefficient

Calix  Airgain

Very weak diversification

The 3 months correlation between Calix and Airgain is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calix Inc and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain 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 Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of Calix i.e., Calix and Airgain go up and down completely randomly.

Pair Corralation between Calix and Airgain

Given the investment horizon of 90 days Calix Inc is expected to generate 0.62 times more return on investment than Airgain. However, Calix Inc is 1.61 times less risky than Airgain. It trades about 0.03 of its potential returns per unit of risk. Airgain is currently generating about -0.19 per unit of risk. If you would invest  3,489  in Calix Inc on December 28, 2024 and sell it today you would earn a total of  101.00  from holding Calix Inc or generate 2.89% return on investment over 90 days.

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

Calix Inc  vs.  Airgain

Calix Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calix Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Calix is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Airgain

Risk-Adjusted Performance

Very Weak

Over the last 90 days Airgain has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Calix and Airgain

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

The idea behind Calix Inc and Airgain 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.