Correlation Between Conifer Holding and AstroNova
Can any of the company-specific risk be diversified away by investing in both Conifer Holding 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 Conifer Holding and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conifer Holding and AstroNova, you can compare the effects of market volatilities on Conifer Holding 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 Conifer Holding with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holding and AstroNova.
Diversification Opportunities for Conifer Holding and AstroNova
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Conifer and AstroNova is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holding and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and Conifer Holding 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 Conifer Holding 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 Conifer Holding i.e., Conifer Holding and AstroNova go up and down completely randomly.
Pair Corralation between Conifer Holding and AstroNova
Given the investment horizon of 90 days Conifer Holding is expected to generate 4.39 times more return on investment than AstroNova. However, Conifer Holding is 4.39 times more volatile than AstroNova. It trades about 0.03 of its potential returns per unit of risk. AstroNova is currently generating about 0.02 per unit of risk. If you would invest 134.00 in Conifer Holding on September 2, 2024 and sell it today you would lose (24.00) from holding Conifer Holding or give up 17.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Conifer Holding vs. AstroNova
Performance |
| Timeline |
| Conifer Holding |
| AstroNova |
Conifer Holding and AstroNova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conifer Holding and AstroNova
The main advantage of trading using opposite Conifer Holding and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conifer Holding 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.| Conifer Holding vs. Wilhelmina | Conifer Holding vs. Unico American | Conifer Holding vs. Creative Media Community | Conifer Holding vs. Kingstone Companies |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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