Correlation Between High Wire and Castellum

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

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

Diversification Opportunities for High Wire and Castellum

-0.23

Correlation Coefficient

High Wire  Castellum

Very good diversification

The 3 months correlation between High and Castellum is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding High Wire Networks and Castellum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castellum and High Wire 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 High Wire Networks are associated (or correlated) with Castellum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castellum has no effect on the direction of High Wire i.e., High Wire and Castellum go up and down completely randomly.

Pair Corralation between High Wire and Castellum

Given the investment horizon of 90 days High Wire Networks is expected to under-perform the Castellum. But the otc stock apears to be less risky and, when comparing its historical volatility, High Wire Networks is 2.0 times less risky than Castellum. The otc stock trades about -0.02 of its potential returns per unit of risk. The Castellum is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  60.00  in Castellum on December 20, 2024 and sell it today you would earn a total of  68.00  from holding Castellum or generate 113.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

High Wire Networks  vs.  Castellum

High Wire Networks

Risk-Adjusted Performance

Very Weak

Over the last 90 days High Wire Networks has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Castellum

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Castellum are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Castellum displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with High Wire and Castellum

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

The idea behind High Wire Networks and Castellum 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.