Correlation Between Cambex Corp and AstroNova
Can any of the company-specific risk be diversified away by investing in both Cambex Corp and AstroNova 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 Cambex Corp and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambex Corp and AstroNova, you can compare the effects of market volatilities on Cambex Corp and AstroNova 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 Cambex Corp with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambex Corp and AstroNova.
Diversification Opportunities for Cambex Corp and AstroNova
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cambex and AstroNova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cambex Corp and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and Cambex 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 Cambex Corp are associated (or correlated) with AstroNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstroNova has no effect on the direction of Cambex Corp i.e., Cambex Corp and AstroNova go up and down completely randomly.
Pair Corralation between Cambex Corp and AstroNova
Given the investment horizon of 90 days Cambex Corp is expected to under-perform the AstroNova. In addition to that, Cambex Corp is 1.96 times more volatile than AstroNova. It trades about -0.04 of its total potential returns per unit of risk. AstroNova is currently generating about -0.03 per unit of volatility. If you would invest 1,410 in AstroNova on January 11, 2025 and sell it today you would lose (540.00) from holding AstroNova or give up 38.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Cambex Corp vs. AstroNova
Performance |
| Timeline |
| Cambex Corp |
| AstroNova |
Cambex Corp and AstroNova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambex Corp and AstroNova
The main advantage of trading using opposite Cambex Corp and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambex Corp position performs unexpectedly, AstroNova 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 AstroNova will offset losses from the drop in AstroNova's long position.| Cambex Corp vs. TransAct Technologies Incorporated | Cambex Corp vs. Identiv | Cambex Corp vs. AGM Group Holdings | Cambex Corp vs. AstroNova |
| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |