Correlation Between Airgain and Akoustis Technologies

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

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

Diversification Opportunities for Airgain and Akoustis Technologies

-0.62

Correlation Coefficient

Airgain  Akoustis Technologies

Excellent diversification

The 3 months correlation between Airgain and Akoustis is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Airgain and Akoustis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoustis Technologies and Airgain 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 Airgain are associated (or correlated) with Akoustis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoustis Technologies has no effect on the direction of Airgain i.e., Airgain and Akoustis Technologies go up and down completely randomly.

Pair Corralation between Airgain and Akoustis Technologies

Given the investment horizon of 90 days Airgain is expected to generate 0.76 times more return on investment than Akoustis Technologies. However, Airgain is 1.32 times less risky than Akoustis Technologies. It trades about 0.03 of its potential returns per unit of risk. Akoustis Technologies is currently generating about -0.07 per unit of risk. If you would invest  579.00  in Airgain on January 25, 2024 and sell it today you would lose (22.00) from holding Airgain or give up 3.8% of portfolio value over 90 days.

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

Airgain  vs.  Akoustis Technologies

Airgain

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Airgain are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Airgain reported solid returns over the last few months and may actually be approaching a breakup point.

Akoustis Technologies

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Akoustis Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Akoustis Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Airgain and Akoustis Technologies

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

The idea behind Airgain and Akoustis Technologies 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.