Correlation Between AstroNova and AGM Group
Can any of the company-specific risk be diversified away by investing in both AstroNova and AGM Group 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 AstroNova and AGM Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstroNova and AGM Group Holdings, you can compare the effects of market volatilities on AstroNova and AGM Group 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 AstroNova with a short position of AGM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and AGM Group.
Diversification Opportunities for AstroNova and AGM Group
Very good diversification
The 3 months correlation between AstroNova and AGM is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and AGM Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGM Group Holdings and AstroNova 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 AstroNova are associated (or correlated) with AGM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGM Group Holdings has no effect on the direction of AstroNova i.e., AstroNova and AGM Group go up and down completely randomly.
Pair Corralation between AstroNova and AGM Group
Given the investment horizon of 90 days AstroNova is expected to generate 0.77 times more return on investment than AGM Group. However, AstroNova is 1.31 times less risky than AGM Group. It trades about 0.08 of its potential returns per unit of risk. AGM Group Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,439 in AstroNova on August 24, 2024 and sell it today you would earn a total of 61.00 from holding AstroNova or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstroNova vs. AGM Group Holdings
Performance |
| Timeline |
| AstroNova |
| AGM Group Holdings |
AstroNova and AGM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstroNova and AGM Group
The main advantage of trading using opposite AstroNova and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstroNova position performs unexpectedly, AGM Group 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 AGM Group will offset losses from the drop in AGM Group's long position.| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
| AGM Group vs. TransAct Technologies Incorporated | AGM Group vs. Key Tronic | AGM Group vs. Identiv | AGM Group vs. AstroNova |
Check out your portfolio center.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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