Correlation Between ClearOne and PowerFleet,

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

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

Diversification Opportunities for ClearOne and PowerFleet,

-0.34

Correlation Coefficient

ClearOne  PowerFleet,

Very good diversification

The 3 months correlation between ClearOne and PowerFleet, is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ClearOne and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and ClearOne 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 ClearOne 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 ClearOne i.e., ClearOne and PowerFleet, go up and down completely randomly.

Pair Corralation between ClearOne and PowerFleet,

Given the investment horizon of 90 days ClearOne is expected to generate 1.89 times more return on investment than PowerFleet,. However, ClearOne is 1.89 times more volatile than PowerFleet,. It trades about 0.04 of its potential returns per unit of risk. PowerFleet, is currently generating about -0.02 per unit of risk. If you would invest  63.00  in ClearOne on December 30, 2024 and sell it today you would lose (2.00) from holding ClearOne or give up 3.17% of portfolio value over 90 days.

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

ClearOne  vs.  PowerFleet,

ClearOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ClearOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, ClearOne displayed solid returns over the last few months and may actually be approaching a breakup point.

PowerFleet,

Risk-Adjusted Performance

Very Weak

Over the last 90 days PowerFleet, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with ClearOne and PowerFleet,

The main advantage of trading using opposite ClearOne and PowerFleet, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClearOne 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 ClearOne 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.