Correlation Between CPI Aerostructures and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both CPI Aerostructures and Astronics Corp 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 CPI Aerostructures and Astronics Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPI Aerostructures and Astronics Corp Cl, you can compare the effects of market volatilities on CPI Aerostructures and Astronics Corp 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 CPI Aerostructures with a short position of Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPI Aerostructures and Astronics Corp.
Diversification Opportunities for CPI Aerostructures and Astronics Corp
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CPI and Astronics is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CPI Aerostructures and Astronics Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics Corp Cl and CPI Aerostructures 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 CPI Aerostructures are associated (or correlated) with Astronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics Corp Cl has no effect on the direction of CPI Aerostructures i.e., CPI Aerostructures and Astronics Corp go up and down completely randomly.
Pair Corralation between CPI Aerostructures and Astronics Corp
Considering the 90-day investment horizon CPI Aerostructures is expected to generate 0.68 times more return on investment than Astronics Corp. However, CPI Aerostructures is 1.48 times less risky than Astronics Corp. It trades about 0.08 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.02 per unit of risk. If you would invest 280.00 in CPI Aerostructures on November 3, 2024 and sell it today you would earn a total of 200.00 from holding CPI Aerostructures or generate 71.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.89% |
| Values | Daily Returns |
CPI Aerostructures vs. Astronics Corp Cl
Performance |
| Timeline |
| CPI Aerostructures |
| Astronics Corp Cl |
CPI Aerostructures and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPI Aerostructures and Astronics Corp
The main advantage of trading using opposite CPI Aerostructures and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPI Aerostructures position performs unexpectedly, Astronics Corp 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 Corp will offset losses from the drop in Astronics Corp's long position.| CPI Aerostructures vs. Ducommun Incorporated | CPI Aerostructures vs. SIFCO Industries | CPI Aerostructures vs. Innovative Solutions and | CPI Aerostructures vs. Air Industries Group |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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