Correlation Between CAMP4 THERAPEUTICS and Actelis Networks

Can any of the company-specific risk be diversified away by investing in both CAMP4 THERAPEUTICS and Actelis Networks 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 CAMP4 THERAPEUTICS and Actelis Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CAMP4 THERAPEUTICS PORATION and Actelis Networks, you can compare the effects of market volatilities on CAMP4 THERAPEUTICS and Actelis Networks 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 CAMP4 THERAPEUTICS with a short position of Actelis Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAMP4 THERAPEUTICS and Actelis Networks.

Diversification Opportunities for CAMP4 THERAPEUTICS and Actelis Networks

-0.05

Correlation Coefficient

CAMP4 THERAPEUTICS  Actelis Networks

Good diversification

The 3 months correlation between CAMP4 and Actelis is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CAMP4 THERAPEUTICS PORATION and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks and CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS PORATION are associated (or correlated) with Actelis Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actelis Networks has no effect on the direction of CAMP4 THERAPEUTICS i.e., CAMP4 THERAPEUTICS and Actelis Networks go up and down completely randomly.

Pair Corralation between CAMP4 THERAPEUTICS and Actelis Networks

Given the investment horizon of 90 days CAMP4 THERAPEUTICS PORATION is expected to generate 1.32 times more return on investment than Actelis Networks. However, CAMP4 THERAPEUTICS is 1.32 times more volatile than Actelis Networks. It trades about 0.01 of its potential returns per unit of risk. Actelis Networks is currently generating about -0.08 per unit of risk. If you would invest  541.00  in CAMP4 THERAPEUTICS PORATION on December 28, 2024 and sell it today you would lose (110.00) from holding CAMP4 THERAPEUTICS PORATION or give up 20.33% of portfolio value over 90 days.

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

CAMP4 THERAPEUTICS PORATION  vs.  Actelis Networks

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CAMP4 THERAPEUTICS PORATION are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent primary indicators, CAMP4 THERAPEUTICS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Actelis Networks

Risk-Adjusted Performance

Very Weak

Over the last 90 days Actelis Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CAMP4 THERAPEUTICS and Actelis Networks

The main advantage of trading using opposite CAMP4 THERAPEUTICS and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAMP4 THERAPEUTICS position performs unexpectedly, Actelis Networks 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 Actelis Networks will offset losses from the drop in Actelis Networks' long position.

The idea behind CAMP4 THERAPEUTICS PORATION and Actelis Networks 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.