Correlation Between Byrna Technologies and Astronics
Can any of the company-specific risk be diversified away by investing in both Byrna Technologies and Astronics 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 Byrna Technologies and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byrna Technologies and Astronics, you can compare the effects of market volatilities on Byrna Technologies and Astronics 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 Byrna Technologies with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byrna Technologies and Astronics.
Diversification Opportunities for Byrna Technologies and Astronics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Byrna and Astronics is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Byrna Technologies and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Byrna Technologies 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 Byrna Technologies are associated (or correlated) with Astronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics has no effect on the direction of Byrna Technologies i.e., Byrna Technologies and Astronics go up and down completely randomly.
Pair Corralation between Byrna Technologies and Astronics
Given the investment horizon of 90 days Byrna Technologies is expected to generate 1.72 times more return on investment than Astronics. However, Byrna Technologies is 1.72 times more volatile than Astronics. It trades about 0.06 of its potential returns per unit of risk. Astronics is currently generating about 0.03 per unit of risk. If you would invest 985.00 in Byrna Technologies on August 27, 2024 and sell it today you would earn a total of 1,146 from holding Byrna Technologies or generate 116.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byrna Technologies vs. Astronics
Performance |
| Timeline |
| Byrna Technologies |
| Astronics |
Byrna Technologies and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byrna Technologies and Astronics
The main advantage of trading using opposite Byrna Technologies and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byrna Technologies position performs unexpectedly, Astronics 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 Astronics will offset losses from the drop in Astronics' long position.| Byrna Technologies vs. The Boeing | Byrna Technologies vs. Curtiss Wright | Byrna Technologies vs. Ehang Holdings | Byrna Technologies vs. General Dynamics |
| Astronics vs. Ducommun Incorporated | Astronics vs. Innovative Solutions and | Astronics vs. National Presto Industries | Astronics vs. Park Electrochemical |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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