Correlation Between Arteris and POET Technologies
Can any of the company-specific risk be diversified away by investing in both Arteris and POET 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 Arteris and POET Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arteris and POET Technologies, you can compare the effects of market volatilities on Arteris and POET 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 Arteris with a short position of POET Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arteris and POET Technologies.
Diversification Opportunities for Arteris and POET Technologies
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arteris and POET is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Arteris and POET Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POET Technologies and Arteris 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 Arteris are associated (or correlated) with POET Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POET Technologies has no effect on the direction of Arteris i.e., Arteris and POET Technologies go up and down completely randomly.
Pair Corralation between Arteris and POET Technologies
Considering the 90-day investment horizon Arteris is expected to generate 0.91 times more return on investment than POET Technologies. However, Arteris is 1.1 times less risky than POET Technologies. It trades about 0.12 of its potential returns per unit of risk. POET Technologies is currently generating about 0.01 per unit of risk. If you would invest 952.00 in Arteris on August 16, 2025 and sell it today you would earn a total of 413.00 from holding Arteris or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arteris vs. POET Technologies
Performance |
| Timeline |
| Arteris |
| POET Technologies |
Arteris and POET Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arteris and POET Technologies
The main advantage of trading using opposite Arteris and POET Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arteris position performs unexpectedly, POET 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 POET Technologies will offset losses from the drop in POET Technologies' long position.| Arteris vs. Ambiq Micro, | Arteris vs. POET Technologies | Arteris vs. Wolfspeed | Arteris vs. Weave Communications |
| POET Technologies vs. Wolfspeed | POET Technologies vs. Arteris | POET Technologies vs. Ambiq Micro, | POET Technologies vs. Sprout Social |
Check out your portfolio center.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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