Correlation Between PowerFleet and Actelis Networks

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

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

Diversification Opportunities for PowerFleet and Actelis Networks

-0.19

Correlation Coefficient

PowerFleet  Actelis Networks

Good diversification

The 3 months correlation between PowerFleet and Actelis is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding PowerFleet and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks and PowerFleet 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 PowerFleet 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 PowerFleet i.e., PowerFleet and Actelis Networks go up and down completely randomly.

Pair Corralation between PowerFleet and Actelis Networks

If you would invest  469.00  in PowerFleet on September 4, 2024 and sell it today you would earn a total of  0.00  from holding PowerFleet or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

PowerFleet  vs.  Actelis Networks

PowerFleet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PowerFleet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, PowerFleet is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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 PowerFleet and Actelis Networks

The main advantage of trading using opposite PowerFleet and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerFleet 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 PowerFleet 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.