Correlation Between POET Technologies and Arteris
Can any of the company-specific risk be diversified away by investing in both POET Technologies and Arteris 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 POET Technologies and Arteris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POET Technologies and Arteris, you can compare the effects of market volatilities on POET Technologies and Arteris 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 POET Technologies with a short position of Arteris. Check out your portfolio center. Please also check ongoing floating volatility patterns of POET Technologies and Arteris.
Diversification Opportunities for POET Technologies and Arteris
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between POET and Arteris is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding POET Technologies and Arteris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arteris and POET Technologies 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 POET Technologies are associated (or correlated) with Arteris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arteris has no effect on the direction of POET Technologies i.e., POET Technologies and Arteris go up and down completely randomly.
Pair Corralation between POET Technologies and Arteris
Given the investment horizon of 90 days POET Technologies is expected to generate 7.92 times less return on investment than Arteris. In addition to that, POET Technologies is 1.13 times more volatile than Arteris. It trades about 0.02 of its total potential returns per unit of risk. Arteris is currently generating about 0.15 per unit of volatility. If you would invest 905.00 in Arteris on September 1, 2025 and sell it today you would earn a total of 529.00 from holding Arteris or generate 58.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
POET Technologies vs. Arteris
Performance |
| Timeline |
| POET Technologies |
| Arteris |
POET Technologies and Arteris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POET Technologies and Arteris
The main advantage of trading using opposite POET Technologies and Arteris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POET Technologies position performs unexpectedly, Arteris 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 Arteris will offset losses from the drop in Arteris' long position.| POET Technologies vs. FDG Electric Vehicles | POET Technologies vs. Martin Marietta Materials | POET Technologies vs. Grupo Carso SAB | POET Technologies vs. World Houseware Limited |
| Arteris vs. VANGUARD FUNDS PLC | Arteris vs. Arrow Financial | Arteris vs. Exchange Bankshares | Arteris vs. BCP Investment Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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