Correlation Between Altigen Communications and Radware
Can any of the company-specific risk be diversified away by investing in both Altigen Communications and Radware 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 Altigen Communications and Radware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altigen Communications and Radware, you can compare the effects of market volatilities on Altigen Communications and Radware 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 Altigen Communications with a short position of Radware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altigen Communications and Radware.
Diversification Opportunities for Altigen Communications and Radware
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altigen and Radware is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Altigen Communications and Radware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radware and Altigen Communications 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 Altigen Communications are associated (or correlated) with Radware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radware has no effect on the direction of Altigen Communications i.e., Altigen Communications and Radware go up and down completely randomly.
Pair Corralation between Altigen Communications and Radware
Given the investment horizon of 90 days Altigen Communications is expected to generate 1.66 times more return on investment than Radware. However, Altigen Communications is 1.66 times more volatile than Radware. It trades about 0.05 of its potential returns per unit of risk. Radware is currently generating about -0.13 per unit of risk. If you would invest 59.00 in Altigen Communications on July 20, 2025 and sell it today you would earn a total of 4.00 from holding Altigen Communications or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altigen Communications vs. Radware
Performance |
| Timeline |
| Altigen Communications |
| Radware |
Altigen Communications and Radware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altigen Communications and Radware
The main advantage of trading using opposite Altigen Communications and Radware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altigen Communications position performs unexpectedly, Radware 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 Radware will offset losses from the drop in Radware's long position.| Altigen Communications vs. Bonso Electronics International | Altigen Communications vs. Edgewater Wireless Systems | Altigen Communications vs. AppYea Inc | Altigen Communications vs. Hapbee Technologies |
| Radware vs. Rapid7 Inc | Radware vs. GigaCloud Technology Class | Radware vs. Verint Systems | Radware vs. Yext Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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