Correlation Between AstroNova and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both AstroNova and Nano Dimension 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 Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstroNova and Nano Dimension, you can compare the effects of market volatilities on AstroNova and Nano Dimension 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 Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and Nano Dimension.
Diversification Opportunities for AstroNova and Nano Dimension
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AstroNova and Nano is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension 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 Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of AstroNova i.e., AstroNova and Nano Dimension go up and down completely randomly.
Pair Corralation between AstroNova and Nano Dimension
Given the investment horizon of 90 days AstroNova is expected to generate 0.71 times more return on investment than Nano Dimension. However, AstroNova is 1.41 times less risky than Nano Dimension. It trades about 0.03 of its potential returns per unit of risk. Nano Dimension is currently generating about 0.01 per unit of risk. If you would invest 1,206 in AstroNova on September 4, 2024 and sell it today you would earn a total of 321.00 from holding AstroNova or generate 26.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstroNova vs. Nano Dimension
Performance |
| Timeline |
| AstroNova |
| Nano Dimension |
AstroNova and Nano Dimension Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstroNova and Nano Dimension
The main advantage of trading using opposite AstroNova and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstroNova position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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