Correlation Between Vislink Technologies and Altigen Communications

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

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

Diversification Opportunities for Vislink Technologies and Altigen Communications

-0.53

Correlation Coefficient

Vislink Technologies  Altigen Communications

Excellent diversification

The 3 months correlation between Vislink and Altigen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vislink Technologies and Altigen Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altigen Communications and Vislink 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 Vislink Technologies are associated (or correlated) with Altigen Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altigen Communications has no effect on the direction of Vislink Technologies i.e., Vislink Technologies and Altigen Communications go up and down completely randomly.

Pair Corralation between Vislink Technologies and Altigen Communications

If you would invest  372.00  in Vislink Technologies on October 27, 2024 and sell it today you would earn a total of  20.00  from holding Vislink Technologies or generate 5.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.26%
Values	Daily Returns

Vislink Technologies  vs.  Altigen Communications

Vislink Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vislink Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Altigen Communications

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altigen Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Altigen Communications is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Vislink Technologies and Altigen Communications

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

The idea behind Vislink Technologies and Altigen Communications 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.