Correlation Between Cps Technologies and Airgain

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

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

Diversification Opportunities for Cps Technologies and Airgain

0.55

Correlation Coefficient

Cps Technologies  Airgain

Very weak diversification

The 3 months correlation between Cps and Airgain is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cps Technologies and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and Cps Technologies 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 Cps Technologies 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 Cps Technologies i.e., Cps Technologies and Airgain go up and down completely randomly.

Pair Corralation between Cps Technologies and Airgain

Given the investment horizon of 90 days Cps Technologies is expected to generate 0.87 times more return on investment than Airgain. However, Cps Technologies is 1.16 times less risky than Airgain. It trades about 0.01 of its potential returns per unit of risk. Airgain is currently generating about -0.18 per unit of risk. If you would invest  162.00  in Cps Technologies on December 27, 2024 and sell it today you would lose (2.00) from holding Cps Technologies or give up 1.23% of portfolio value over 90 days.

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

Cps Technologies  vs.  Airgain

Cps Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cps Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Cps Technologies is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

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 inconsistent 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 Cps Technologies and Airgain

The main advantage of trading using opposite Cps Technologies and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cps Technologies 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 Cps Technologies 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.