Correlation Between Innovative Solutions and Astronics
Can any of the company-specific risk be diversified away by investing in both Innovative Solutions 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 Innovative Solutions and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovative Solutions and and Astronics, you can compare the effects of market volatilities on Innovative Solutions 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 Innovative Solutions with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Solutions and Astronics.
Diversification Opportunities for Innovative Solutions and Astronics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Innovative and Astronics is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Solutions and and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Innovative Solutions 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 Innovative Solutions and 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 Innovative Solutions i.e., Innovative Solutions and Astronics go up and down completely randomly.
Pair Corralation between Innovative Solutions and Astronics
Given the investment horizon of 90 days Innovative Solutions and is expected to generate 0.91 times more return on investment than Astronics. However, Innovative Solutions and is 1.1 times less risky than Astronics. It trades about 0.26 of its potential returns per unit of risk. Astronics is currently generating about 0.0 per unit of risk. If you would invest 730.00 in Innovative Solutions and on November 2, 2024 and sell it today you would earn a total of 380.00 from holding Innovative Solutions and or generate 52.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Solutions and vs. Astronics
Performance |
| Timeline |
| Innovative Solutions and |
| Astronics |
Innovative Solutions and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Solutions and Astronics
The main advantage of trading using opposite Innovative Solutions and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Solutions 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.| Innovative Solutions vs. Park Electrochemical | Innovative Solutions vs. VSE Corporation | Innovative Solutions vs. Curtiss Wright | Innovative Solutions vs. Ducommun Incorporated |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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