Correlation Between Astronics and Moog
Can any of the company-specific risk be diversified away by investing in both Astronics and Moog 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 Astronics and Moog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astronics and Moog Inc, you can compare the effects of market volatilities on Astronics and Moog 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 Astronics with a short position of Moog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics and Moog.
Diversification Opportunities for Astronics and Moog
Excellent diversification
The 3 months correlation between Astronics and Moog is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Astronics and Moog Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moog Inc and Astronics 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 Astronics are associated (or correlated) with Moog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moog Inc has no effect on the direction of Astronics i.e., Astronics and Moog go up and down completely randomly.
Pair Corralation between Astronics and Moog
Given the investment horizon of 90 days Astronics is expected to under-perform the Moog. In addition to that, Astronics is 1.56 times more volatile than Moog Inc. It trades about -0.1 of its total potential returns per unit of risk. Moog Inc is currently generating about 0.19 per unit of volatility. If you would invest 19,449 in Moog Inc on August 31, 2024 and sell it today you would earn a total of 2,549 from holding Moog Inc or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astronics vs. Moog Inc
Performance |
| Timeline |
| Astronics |
| Moog Inc |
Astronics and Moog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics and Moog
The main advantage of trading using opposite Astronics and Moog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics position performs unexpectedly, Moog 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 Moog will offset losses from the drop in Moog's long position.| Astronics vs. Ducommun Incorporated | Astronics vs. Innovative Solutions and | Astronics vs. National Presto Industries | Astronics vs. Park Electrochemical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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