Correlation Between Astronics Corp and HEICO
Can any of the company-specific risk be diversified away by investing in both Astronics Corp and HEICO 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 Corp and HEICO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astronics Corp Cl and HEICO, you can compare the effects of market volatilities on Astronics Corp and HEICO 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 Corp with a short position of HEICO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics Corp and HEICO.
Diversification Opportunities for Astronics Corp and HEICO
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astronics and HEICO is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Astronics Corp Cl and HEICO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEICO and Astronics Corp 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 Corp Cl are associated (or correlated) with HEICO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEICO has no effect on the direction of Astronics Corp i.e., Astronics Corp and HEICO go up and down completely randomly.
Pair Corralation between Astronics Corp and HEICO
Assuming the 90 days horizon Astronics Corp Cl is expected to generate 3.21 times more return on investment than HEICO. However, Astronics Corp is 3.21 times more volatile than HEICO. It trades about 0.03 of its potential returns per unit of risk. HEICO is currently generating about 0.08 per unit of risk. If you would invest 1,497 in Astronics Corp Cl on August 27, 2024 and sell it today you would earn a total of 218.00 from holding Astronics Corp Cl or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.1% |
| Values | Daily Returns |
Astronics Corp Cl vs. HEICO
Performance |
| Timeline |
| Astronics Corp Cl |
| HEICO |
Astronics Corp and HEICO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics Corp and HEICO
The main advantage of trading using opposite Astronics Corp and HEICO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics Corp position performs unexpectedly, HEICO 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 HEICO will offset losses from the drop in HEICO's long position.| Astronics Corp vs. Firan Technology Group | Astronics Corp vs. 808 Renewable Energy | Astronics Corp vs. Park Electrochemical | Astronics Corp vs. Innovative Solutions and |
| HEICO vs. Vertical Aerospace | HEICO vs. Rolls Royce Holdings plc | HEICO vs. Embraer SA ADR | HEICO vs. Rocket Lab USA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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