Correlation Between AstroNova and Conifer Holding
Can any of the company-specific risk be diversified away by investing in both AstroNova and Conifer Holding 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 Conifer Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstroNova and Conifer Holding, you can compare the effects of market volatilities on AstroNova and Conifer Holding 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 Conifer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and Conifer Holding.
Diversification Opportunities for AstroNova and Conifer Holding
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AstroNova and Conifer is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and Conifer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holding 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 Conifer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holding has no effect on the direction of AstroNova i.e., AstroNova and Conifer Holding go up and down completely randomly.
Pair Corralation between AstroNova and Conifer Holding
Given the investment horizon of 90 days AstroNova is expected to generate 8.86 times less return on investment than Conifer Holding. But when comparing it to its historical volatility, AstroNova is 4.39 times less risky than Conifer Holding. It trades about 0.02 of its potential returns per unit of risk. Conifer Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Conifer Holding on September 2, 2024 and sell it today you would lose (24.00) from holding Conifer Holding or give up 17.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
AstroNova vs. Conifer Holding
Performance |
| Timeline |
| AstroNova |
| Conifer Holding |
AstroNova and Conifer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstroNova and Conifer Holding
The main advantage of trading using opposite AstroNova and Conifer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstroNova position performs unexpectedly, Conifer Holding 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 Conifer Holding will offset losses from the drop in Conifer Holding's long position.| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
| Conifer Holding vs. Wilhelmina | Conifer Holding vs. Unico American | Conifer Holding vs. Creative Media Community | Conifer Holding vs. Kingstone Companies |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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