Correlation Between Altigen Communications and U S Cellular

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

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

Diversification Opportunities for Altigen Communications and U S Cellular

0.0

Correlation Coefficient

Altigen Communications  U S Cellular

Pay attention - limited upside

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

Pair Corralation between Altigen Communications and U S Cellular

If you would invest  6,103  in United States Cellular on May 15, 2025 and sell it today you would earn a total of  1,495  from holding United States Cellular or generate 24.5% return on investment over 90 days.

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

Altigen Communications  vs.  United States Cellular

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.

United States Cellular

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in United States Cellular are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, U S Cellular displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altigen Communications and U S Cellular

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

The idea behind Altigen Communications and United States Cellular 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.