Correlation Between Actelis Networks and H D

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

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

Diversification Opportunities for Actelis Networks and H D

0.09

Correlation Coefficient

Actelis Networks  H D

Significant diversification

The 3 months correlation between Actelis and HDIH is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Actelis Networks and H D International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H D International and Actelis Networks 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 Actelis Networks are associated (or correlated) with H D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H D International has no effect on the direction of Actelis Networks i.e., Actelis Networks and H D go up and down completely randomly.

Pair Corralation between Actelis Networks and H D

If you would invest  0.02  in H D International Holdings on September 20, 2024 and sell it today you would earn a total of  0.00  from holding H D International Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Actelis Networks  vs.  H D International Holdings

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.

H D International

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in H D International Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting forward indicators, H D demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Actelis Networks and H D

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

The idea behind Actelis Networks and H D International Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.