Correlation Between A2Z Smart and Aviat Networks

Can any of the company-specific risk be diversified away by investing in both A2Z Smart and Aviat Networks 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 A2Z Smart and Aviat Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between A2Z Smart Technologies and Aviat Networks, you can compare the effects of market volatilities on A2Z Smart and Aviat Networks 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 A2Z Smart with a short position of Aviat Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2Z Smart and Aviat Networks.

Diversification Opportunities for A2Z Smart and Aviat Networks

0.26

Correlation Coefficient

A2Z Smart  Aviat Networks

Modest diversification

The 3 months correlation between A2Z and Aviat is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding A2Z Smart Technologies and Aviat Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aviat Networks and A2Z Smart 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 A2Z Smart Technologies are associated (or correlated) with Aviat Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aviat Networks has no effect on the direction of A2Z Smart i.e., A2Z Smart and Aviat Networks go up and down completely randomly.

Pair Corralation between A2Z Smart and Aviat Networks

Allowing for the 90-day total investment horizon A2Z Smart Technologies is expected to under-perform the Aviat Networks. In addition to that, A2Z Smart is 1.52 times more volatile than Aviat Networks. It trades about -0.06 of its total potential returns per unit of risk. Aviat Networks is currently generating about 0.0 per unit of volatility. If you would invest  2,241  in Aviat Networks on August 31, 2025 and sell it today you would lose (70.00) from holding Aviat Networks or give up 3.12% of portfolio value over 90 days.

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

A2Z Smart Technologies  vs.  Aviat Networks

A2Z Smart Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days A2Z Smart Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Aviat Networks

Risk-Adjusted Performance

Weakest

Over the last 90 days Aviat Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Aviat Networks is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with A2Z Smart and Aviat Networks

The main advantage of trading using opposite A2Z Smart and Aviat Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2Z Smart position performs unexpectedly, Aviat Networks 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 Aviat Networks will offset losses from the drop in Aviat Networks' long position.

The idea behind A2Z Smart Technologies and Aviat Networks 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.