Correlation Between Elbit Systems and Astronics
Can any of the company-specific risk be diversified away by investing in both Elbit Systems 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 Elbit Systems and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Systems and Astronics, you can compare the effects of market volatilities on Elbit Systems 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 Elbit Systems with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Systems and Astronics.
Diversification Opportunities for Elbit Systems and Astronics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elbit and Astronics is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Systems and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Elbit Systems 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 Elbit Systems 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 Elbit Systems i.e., Elbit Systems and Astronics go up and down completely randomly.
Pair Corralation between Elbit Systems and Astronics
Given the investment horizon of 90 days Elbit Systems is expected to generate 0.52 times more return on investment than Astronics. However, Elbit Systems is 1.93 times less risky 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 20,575 in Elbit Systems on August 24, 2024 and sell it today you would earn a total of 4,308 from holding Elbit Systems or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Elbit Systems vs. Astronics
Performance |
| Timeline |
| Elbit Systems |
| Astronics |
Elbit Systems and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Systems and Astronics
The main advantage of trading using opposite Elbit Systems and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Systems 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.| Elbit Systems vs. Mercury Systems | Elbit Systems vs. Triumph Group | Elbit Systems vs. CAE Inc | Elbit Systems vs. AAR Corp |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |