Correlation Between Erf Wireless and Wireless Xcessories

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Can any of the company-specific risk be diversified away by investing in both Erf Wireless and Wireless Xcessories 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 Erf Wireless and Wireless Xcessories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erf Wireless and Wireless Xcessories Group, you can compare the effects of market volatilities on Erf Wireless and Wireless Xcessories 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 Erf Wireless with a short position of Wireless Xcessories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erf Wireless and Wireless Xcessories.

Diversification Opportunities for Erf Wireless and Wireless Xcessories

-1.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Erf and Wireless is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Erf Wireless and Wireless Xcessories Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Xcessories and Erf Wireless 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 Erf Wireless are associated (or correlated) with Wireless Xcessories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Xcessories has no effect on the direction of Erf Wireless i.e., Erf Wireless and Wireless Xcessories go up and down completely randomly.

Pair Corralation between Erf Wireless and Wireless Xcessories

If you would invest  0.07  in Wireless Xcessories Group on September 4, 2025 and sell it today you would earn a total of  0.00  from holding Wireless Xcessories Group or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthStrong
Accuracy98.44%
ValuesDaily Returns

Erf Wireless  vs.  Wireless Xcessories Group

 Performance 
       Timeline  
Erf Wireless 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Erf Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Erf Wireless is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Wireless Xcessories 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Wireless Xcessories Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Wireless Xcessories is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Erf Wireless and Wireless Xcessories Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Erf Wireless and Wireless Xcessories

The main advantage of trading using opposite Erf Wireless and Wireless Xcessories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erf Wireless position performs unexpectedly, Wireless Xcessories 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 Wireless Xcessories will offset losses from the drop in Wireless Xcessories' long position.
The idea behind Erf Wireless and Wireless Xcessories Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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