Correlation Between Altigen Communications and Ucloudlink

Can any of the company-specific risk be diversified away by investing in both Altigen Communications and Ucloudlink 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 Ucloudlink into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altigen Communications and Ucloudlink Group, you can compare the effects of market volatilities on Altigen Communications and Ucloudlink 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 Ucloudlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altigen Communications and Ucloudlink.

Diversification Opportunities for Altigen Communications and Ucloudlink

0.0

Correlation Coefficient

Altigen Communications  Ucloudlink

Pay attention - limited upside

The 3 months correlation between Altigen and Ucloudlink is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altigen Communications and Ucloudlink Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ucloudlink Group 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 Ucloudlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ucloudlink Group has no effect on the direction of Altigen Communications i.e., Altigen Communications and Ucloudlink go up and down completely randomly.

Pair Corralation between Altigen Communications and Ucloudlink

If you would invest  132.00  in Ucloudlink Group on May 12, 2025 and sell it today you would earn a total of  227.00  from holding Ucloudlink Group or generate 171.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Altigen Communications  vs.  Ucloudlink Group

Altigen Communications

Risk-Adjusted Performance

Weakest

Over the last 90 days Altigen Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Altigen Communications is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Ucloudlink Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ucloudlink Group are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Ucloudlink disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altigen Communications and Ucloudlink

The main advantage of trading using opposite Altigen Communications and Ucloudlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altigen Communications position performs unexpectedly, Ucloudlink 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 Ucloudlink will offset losses from the drop in Ucloudlink's long position.

The idea behind Altigen Communications and Ucloudlink 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.