Correlation Between Eve Holding and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both Eve Holding 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 Eve Holding and Astronics Corp 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 Corp Cl, you can compare the effects of market volatilities on Eve Holding 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 Eve Holding with a short position of Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Astronics Corp.
Diversification Opportunities for Eve Holding and Astronics Corp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eve and Astronics is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding 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 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 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 Eve Holding i.e., Eve Holding and Astronics Corp go up and down completely randomly.
Pair Corralation between Eve Holding and Astronics Corp
Given the investment horizon of 90 days Eve Holding is expected to under-perform the Astronics Corp. But the stock apears to be less risky and, when comparing its historical volatility, Eve Holding is 1.19 times less risky than Astronics Corp. The stock trades about -0.03 of its potential returns per unit of risk. The Astronics Corp Cl is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,506 in Astronics Corp Cl on August 31, 2024 and sell it today you would earn a total of 78.00 from holding Astronics Corp Cl or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.17% |
| Values | Daily Returns |
Eve Holding vs. Astronics Corp Cl
Performance |
| Timeline |
| Eve Holding |
| Astronics Corp Cl |
Eve Holding and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eve Holding and Astronics Corp
The main advantage of trading using opposite Eve Holding and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding 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.| Eve Holding vs. Lilium NV | Eve Holding vs. Archer Aviation | Eve Holding vs. Ehang Holdings | Eve Holding vs. Vertical Aerospace |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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