Correlation Between Astronics Corp and Tel Instrument
Can any of the company-specific risk be diversified away by investing in both Astronics Corp and Tel Instrument 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 Tel Instrument 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 Tel Instrument Electronics Corp, you can compare the effects of market volatilities on Astronics Corp and Tel Instrument 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 Tel Instrument. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics Corp and Tel Instrument.
Diversification Opportunities for Astronics Corp and Tel Instrument
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astronics and Tel is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Astronics Corp Cl and Tel Instrument Electronics Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tel Instrument Elect 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 Tel Instrument. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tel Instrument Elect has no effect on the direction of Astronics Corp i.e., Astronics Corp and Tel Instrument go up and down completely randomly.
Pair Corralation between Astronics Corp and Tel Instrument
Assuming the 90 days horizon Astronics Corp Cl is expected to generate 1.57 times more return on investment than Tel Instrument. However, Astronics Corp is 1.57 times more volatile than Tel Instrument Electronics Corp. It trades about 0.03 of its potential returns per unit of risk. Tel Instrument Electronics Corp is currently generating about 0.04 per unit of risk. If you would invest 1,506 in Astronics Corp Cl on August 26, 2024 and sell it today you would earn a total of 209.00 from holding Astronics Corp Cl or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 17.86% |
| Values | Daily Returns |
Astronics Corp Cl vs. Tel Instrument Electronics Cor
Performance |
| Timeline |
| Astronics Corp Cl |
| Tel Instrument Elect |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astronics Corp and Tel Instrument Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics Corp and Tel Instrument
The main advantage of trading using opposite Astronics Corp and Tel Instrument positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics Corp position performs unexpectedly, Tel Instrument 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 Tel Instrument will offset losses from the drop in Tel Instrument'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 |
| Tel Instrument vs. 808 Renewable Energy | Tel Instrument vs. Austal Limited | Tel Instrument vs. Sky Harbour Group | Tel Instrument vs. VirTra Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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