Correlation Between Eve Holding and Astronics
Can any of the company-specific risk be diversified away by investing in both Eve Holding 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 Eve Holding and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eve Holding and Astronics, you can compare the effects of market volatilities on Eve Holding 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 Eve Holding with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Astronics.
Diversification Opportunities for Eve Holding and Astronics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eve and Astronics is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Eve 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 Eve Holding 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 Eve Holding i.e., Eve Holding and Astronics go up and down completely randomly.
Pair Corralation between Eve Holding and Astronics
Given the investment horizon of 90 days Eve Holding is expected to under-perform the Astronics. In addition to that, Eve Holding is 3.0 times more volatile than Astronics. It trades about -0.06 of its total potential returns per unit of risk. Astronics is currently generating about 0.2 per unit of volatility. If you would invest 1,589 in Astronics on October 21, 2024 and sell it today you would earn a total of 102.00 from holding Astronics or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eve Holding vs. Astronics
Performance |
| Timeline |
| Eve Holding |
| Astronics |
Eve Holding and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eve Holding and Astronics
The main advantage of trading using opposite Eve Holding and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding 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.| Eve Holding vs. Virgin Galactic Holdings | Eve Holding vs. Redwire Corp | Eve Holding vs. Momentus | Eve Holding vs. Rocket Lab USA |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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