Correlation Between AstroNova and Cambex Corp
Can any of the company-specific risk be diversified away by investing in both AstroNova and Cambex Corp 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 Cambex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstroNova and Cambex Corp, you can compare the effects of market volatilities on AstroNova and Cambex Corp 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 Cambex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and Cambex Corp.
Diversification Opportunities for AstroNova and Cambex Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AstroNova and Cambex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and Cambex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambex Corp 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 Cambex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambex Corp has no effect on the direction of AstroNova i.e., AstroNova and Cambex Corp go up and down completely randomly.
Pair Corralation between AstroNova and Cambex Corp
If you would invest 1,415 in AstroNova on September 13, 2024 and sell it today you would earn a total of 86.00 from holding AstroNova or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstroNova vs. Cambex Corp
Performance |
| Timeline |
| AstroNova |
| Cambex Corp |
AstroNova and Cambex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstroNova and Cambex Corp
The main advantage of trading using opposite AstroNova and Cambex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstroNova position performs unexpectedly, Cambex Corp 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 Cambex Corp will offset losses from the drop in Cambex Corp's long position.| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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