Correlation Between Aviat Networks and Eshallgo

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

By analyzing existing cross correlation between Aviat Networks and Eshallgo Class A, you can compare the effects of market volatilities on Aviat Networks and Eshallgo 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 Aviat Networks with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aviat Networks and Eshallgo.

Diversification Opportunities for Aviat Networks and Eshallgo

-0.63

Correlation Coefficient

Aviat Networks  Eshallgo

Excellent diversification

The 3 months correlation between Aviat and Eshallgo is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aviat Networks and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and Aviat Networks 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 Aviat Networks are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Aviat Networks i.e., Aviat Networks and Eshallgo go up and down completely randomly.

Pair Corralation between Aviat Networks and Eshallgo

Given the investment horizon of 90 days Aviat Networks is expected to under-perform the Eshallgo. But the stock apears to be less risky and, when comparing its historical volatility, Aviat Networks is 2.27 times less risky than Eshallgo. The stock trades about -0.23 of its potential returns per unit of risk. The Eshallgo Class A is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  77.00  in Eshallgo Class A on May 10, 2025 and sell it today you would lose (6.00) from holding Eshallgo Class A or give up 7.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aviat Networks  vs.  Eshallgo Class A

Aviat Networks

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Aviat Networks are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Aviat Networks may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Eshallgo Class A

Risk-Adjusted Performance

Weakest

Over the last 90 days Eshallgo Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Aviat Networks and Eshallgo

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

The idea behind Aviat Networks and Eshallgo Class A 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 Global Correlations module to find global opportunities by holding instruments from different markets.