Correlation Between CTS and PowerFleet,
Can any of the company-specific risk be diversified away by investing in both CTS 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 CTS and PowerFleet, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTS Corporation and PowerFleet,, you can compare the effects of market volatilities on CTS 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 CTS with a short position of PowerFleet,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTS and PowerFleet,.
Diversification Opportunities for CTS and PowerFleet,
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTS and PowerFleet, is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CTS Corp. and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and CTS 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 CTS Corporation 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 CTS i.e., CTS and PowerFleet, go up and down completely randomly.
Pair Corralation between CTS and PowerFleet,
Considering the 90-day investment horizon CTS Corporation is expected to under-perform the PowerFleet,. But the stock apears to be less risky and, when comparing its historical volatility, CTS Corporation is 3.6 times less risky than PowerFleet,. The stock trades about -0.22 of its potential returns per unit of risk. The PowerFleet, is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 704.00 in PowerFleet, on December 3, 2024 and sell it today you would earn a total of 1.00 from holding PowerFleet, or generate 0.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
CTS Corp. vs. PowerFleet,
Performance |
Timeline |
CTS Corporation |
PowerFleet, |
CTS and PowerFleet, Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CTS and PowerFleet,
The main advantage of trading using opposite CTS and PowerFleet, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTS 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 CTS Corporation 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.PowerFleet, vs. Maanshan Iron Steel | PowerFleet, vs. Black Mammoth Metals | PowerFleet, vs. Enzyme Environmental Solutions | PowerFleet, vs. Gfl Environmental Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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