Correlation Between Astronics Corp and V2X
Can any of the company-specific risk be diversified away by investing in both Astronics Corp and V2X 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 V2X 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 V2X Inc, you can compare the effects of market volatilities on Astronics Corp and V2X 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 V2X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics Corp and V2X.
Diversification Opportunities for Astronics Corp and V2X
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astronics and V2X is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Astronics Corp Cl and V2X Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V2X Inc 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 V2X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V2X Inc has no effect on the direction of Astronics Corp i.e., Astronics Corp and V2X go up and down completely randomly.
Pair Corralation between Astronics Corp and V2X
Assuming the 90 days horizon Astronics Corp Cl is expected to generate 1.91 times more return on investment than V2X. However, Astronics Corp is 1.91 times more volatile than V2X Inc. It trades about 0.05 of its potential returns per unit of risk. V2X Inc is currently generating about 0.05 per unit of risk. If you would invest 975.00 in Astronics Corp Cl on September 2, 2024 and sell it today you would earn a total of 609.00 from holding Astronics Corp Cl or generate 62.46% 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. V2X Inc
Performance |
| Timeline |
| Astronics Corp Cl |
| V2X Inc |
Astronics Corp and V2X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics Corp and V2X
The main advantage of trading using opposite Astronics Corp and V2X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics Corp position performs unexpectedly, V2X 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 V2X will offset losses from the drop in V2X'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 |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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