Correlation Between Astronics Corp and National Presto
Can any of the company-specific risk be diversified away by investing in both Astronics Corp and National Presto 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 National Presto 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 National Presto Industries, you can compare the effects of market volatilities on Astronics Corp and National Presto 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 National Presto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics Corp and National Presto.
Diversification Opportunities for Astronics Corp and National Presto
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astronics and National is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Astronics Corp Cl and National Presto Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Presto Indu 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 National Presto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Presto Indu has no effect on the direction of Astronics Corp i.e., Astronics Corp and National Presto go up and down completely randomly.
Pair Corralation between Astronics Corp and National Presto
Assuming the 90 days horizon Astronics Corp Cl is expected to under-perform the National Presto. In addition to that, Astronics Corp is 2.66 times more volatile than National Presto Industries. It trades about -0.09 of its total potential returns per unit of risk. National Presto Industries is currently generating about 0.05 per unit of volatility. If you would invest 7,667 in National Presto Industries on September 2, 2024 and sell it today you would earn a total of 305.00 from holding National Presto Industries or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astronics Corp Cl vs. National Presto Industries
Performance |
| Timeline |
| Astronics Corp Cl |
| National Presto Indu |
Astronics Corp and National Presto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics Corp and National Presto
The main advantage of trading using opposite Astronics Corp and National Presto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics Corp position performs unexpectedly, National Presto 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 National Presto will offset losses from the drop in National Presto'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 |
| National Presto vs. Park Electrochemical | National Presto vs. Ducommun Incorporated | National Presto vs. Innovative Solutions and | National Presto vs. VSE Corporation |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |