Correlation Between SBA Communications and Altigen Communications

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

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

Diversification Opportunities for SBA Communications and Altigen Communications

-0.44

Correlation Coefficient

SBA Communications  Altigen Communications

Very good diversification

The 3 months correlation between SBA and Altigen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SBA Communications Corp and Altigen Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altigen Communications and SBA 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 SBA Communications Corp are associated (or correlated) with Altigen Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altigen Communications has no effect on the direction of SBA Communications i.e., SBA Communications and Altigen Communications go up and down completely randomly.

Pair Corralation between SBA Communications and Altigen Communications

Given the investment horizon of 90 days SBA Communications Corp is expected to under-perform the Altigen Communications. But the stock apears to be less risky and, when comparing its historical volatility, SBA Communications Corp is 2.06 times less risky than Altigen Communications. The stock trades about -0.2 of its potential returns per unit of risk. The Altigen Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  59.00  in Altigen Communications on July 11, 2025 and sell it today you would earn a total of  3.00  from holding Altigen Communications or generate 5.08% return on investment over 90 days.

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

SBA Communications Corp  vs.  Altigen Communications

SBA Communications Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days SBA Communications Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Altigen Communications

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Altigen Communications are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Altigen Communications may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with SBA Communications and Altigen Communications

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

The idea behind SBA Communications Corp and Altigen Communications 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.