Correlation Between AstroNova and STRC Old
Can any of the company-specific risk be diversified away by investing in both AstroNova and STRC Old 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 STRC Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstroNova and STRC Old, you can compare the effects of market volatilities on AstroNova and STRC Old 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 STRC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and STRC Old.
Diversification Opportunities for AstroNova and STRC Old
Average diversification
The 3 months correlation between AstroNova and STRC is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and STRC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRC Old 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 STRC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRC Old has no effect on the direction of AstroNova i.e., AstroNova and STRC Old go up and down completely randomly.
Pair Corralation between AstroNova and STRC Old
If you would invest 1,421 in AstroNova on August 27, 2024 and sell it today you would earn a total of 56.00 from holding AstroNova or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
AstroNova vs. STRC Old
Performance |
| Timeline |
| AstroNova |
| STRC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AstroNova and STRC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstroNova and STRC Old
The main advantage of trading using opposite AstroNova and STRC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstroNova position performs unexpectedly, STRC Old 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 STRC Old will offset losses from the drop in STRC Old's long position.| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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