Correlation Between Iteris and Actelis Networks

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

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

Diversification Opportunities for Iteris and Actelis Networks

-0.54

Correlation Coefficient

Iteris  Actelis Networks

Excellent diversification

The 3 months correlation between Iteris and Actelis is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Iteris Inc and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks and Iteris 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 Iteris Inc 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 Iteris i.e., Iteris and Actelis Networks go up and down completely randomly.

Pair Corralation between Iteris and Actelis Networks

Considering the 90-day investment horizon Iteris Inc is expected to generate 37.87 times more return on investment than Actelis Networks. However, Iteris is 37.87 times more volatile than Actelis Networks. It trades about 0.15 of its potential returns per unit of risk. Actelis Networks is currently generating about -0.07 per unit of risk. If you would invest  705.00  in Iteris Inc on September 3, 2024 and sell it today you would earn a total of  25,944  from holding Iteris Inc or generate 3680.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	76.56%
Values	Daily Returns

Iteris Inc  vs.  Actelis Networks

Iteris Inc

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Iteris Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly unsteady basic indicators, Iteris demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Actelis Networks

Risk-Adjusted Performance

0 of 100

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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Iteris and Actelis Networks

The main advantage of trading using opposite Iteris and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteris 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 Iteris Inc 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.