Correlation Between Airbus Group and Astronics
Can any of the company-specific risk be diversified away by investing in both Airbus Group 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 Airbus Group and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbus Group NV and Astronics, you can compare the effects of market volatilities on Airbus Group 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 Airbus Group with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Astronics.
Diversification Opportunities for Airbus Group and Astronics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Airbus and Astronics is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group NV and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Airbus Group 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 Airbus Group NV 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 Airbus Group i.e., Airbus Group and Astronics go up and down completely randomly.
Pair Corralation between Airbus Group and Astronics
Assuming the 90 days horizon Airbus Group NV is expected to generate 0.36 times more return on investment than Astronics. However, Airbus Group NV is 2.79 times less risky than Astronics. It trades about -0.15 of its potential returns per unit of risk. Astronics is currently generating about -0.13 per unit of risk. If you would invest 3,785 in Airbus Group NV on August 29, 2024 and sell it today you would lose (219.00) from holding Airbus Group NV or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbus Group NV vs. Astronics
Performance |
| Timeline |
| Airbus Group NV |
| Astronics |
Airbus Group and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus Group and Astronics
The main advantage of trading using opposite Airbus Group and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group 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.| Airbus Group vs. Safran SA | Airbus Group vs. Moog Inc | Airbus Group vs. BAE Systems PLC | Airbus Group vs. Airbus Group SE |
| Astronics vs. Sidus Space | Astronics vs. Rocket Lab USA | Astronics vs. Momentus | Astronics vs. Planet Labs PBC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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