Correlation Between AppYea and Altigen Communications
Can any of the company-specific risk be diversified away by investing in both AppYea 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 AppYea and Altigen Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AppYea Inc and Altigen Communications, you can compare the effects of market volatilities on AppYea 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 AppYea with a short position of Altigen Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of AppYea and Altigen Communications.
Diversification Opportunities for AppYea and Altigen Communications
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between AppYea and Altigen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding AppYea Inc and Altigen Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altigen Communications and AppYea 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 AppYea Inc 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 AppYea i.e., AppYea and Altigen Communications go up and down completely randomly.
Pair Corralation between AppYea and Altigen Communications
Given the investment horizon of 90 days AppYea Inc is expected to generate 4.3 times more return on investment than Altigen Communications. However, AppYea is 4.3 times more volatile than Altigen Communications. It trades about 0.14 of its potential returns per unit of risk. Altigen Communications is currently generating about 0.04 per unit of risk. If you would invest 1.00 in AppYea Inc on July 23, 2025 and sell it today you would earn a total of 0.86 from holding AppYea Inc or generate 86.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AppYea Inc vs. Altigen Communications
Performance |
| Timeline |
| AppYea Inc |
| Altigen Communications |
AppYea and Altigen Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AppYea and Altigen Communications
The main advantage of trading using opposite AppYea and Altigen Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AppYea 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.| AppYea vs. SeaChange International | AppYea vs. Hello Pal International | AppYea vs. Everything Blockchain | AppYea vs. ZOO Digital Group |
| Altigen Communications vs. Bonso Electronics International | Altigen Communications vs. Edgewater Wireless Systems | Altigen Communications vs. AppYea Inc | Altigen Communications vs. SeaChange International |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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