Correlation Between Astronics Corp and VSE
Can any of the company-specific risk be diversified away by investing in both Astronics Corp and VSE 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 VSE 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 VSE Corporation, you can compare the effects of market volatilities on Astronics Corp and VSE 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 VSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics Corp and VSE.
Diversification Opportunities for Astronics Corp and VSE
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astronics and VSE is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Astronics Corp Cl and VSE Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VSE Corporation 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 VSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VSE Corporation has no effect on the direction of Astronics Corp i.e., Astronics Corp and VSE go up and down completely randomly.
Pair Corralation between Astronics Corp and VSE
Assuming the 90 days horizon Astronics Corp is expected to generate 1.99 times less return on investment than VSE. In addition to that, Astronics Corp is 1.46 times more volatile than VSE Corporation. It trades about 0.08 of its total potential returns per unit of risk. VSE Corporation is currently generating about 0.23 per unit of volatility. If you would invest 9,282 in VSE Corporation on November 3, 2024 and sell it today you would earn a total of 953.00 from holding VSE Corporation or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astronics Corp Cl vs. VSE Corp.
Performance |
| Timeline |
| Astronics Corp Cl |
| VSE Corporation |
Astronics Corp and VSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics Corp and VSE
The main advantage of trading using opposite Astronics Corp and VSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics Corp position performs unexpectedly, VSE 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 VSE will offset losses from the drop in VSE'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 |
| VSE vs. Park Electrochemical | VSE vs. Innovative Solutions and | VSE vs. Curtiss Wright | VSE vs. National Presto Industries |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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