Correlation Between Astronics Corp and Satellogic
Can any of the company-specific risk be diversified away by investing in both Astronics Corp and Satellogic 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 Satellogic 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 Satellogic V, you can compare the effects of market volatilities on Astronics Corp and Satellogic 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 Satellogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics Corp and Satellogic.
Diversification Opportunities for Astronics Corp and Satellogic
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astronics and Satellogic is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Astronics Corp Cl and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V 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 Satellogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic V has no effect on the direction of Astronics Corp i.e., Astronics Corp and Satellogic go up and down completely randomly.
Pair Corralation between Astronics Corp and Satellogic
Assuming the 90 days horizon Astronics Corp Cl is expected to generate 0.75 times more return on investment than Satellogic. However, Astronics Corp Cl is 1.34 times less risky than Satellogic. It trades about 0.04 of its potential returns per unit of risk. Satellogic V is currently generating about -0.01 per unit of risk. If you would invest 1,090 in Astronics Corp Cl on August 29, 2024 and sell it today you would earn a total of 494.00 from holding Astronics Corp Cl or generate 45.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.66% |
| Values | Daily Returns |
Astronics Corp Cl vs. Satellogic V
Performance |
| Timeline |
| Astronics Corp Cl |
| Satellogic V |
Astronics Corp and Satellogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics Corp and Satellogic
The main advantage of trading using opposite Astronics Corp and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics Corp position performs unexpectedly, Satellogic 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 Satellogic will offset losses from the drop in Satellogic'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 |
| Satellogic vs. Bioceres Crop Solutions | Satellogic vs. Blacksky Technology | Satellogic vs. Sky Harbour Group | Satellogic vs. Redwire Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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