Correlation Between Innovative Solutions and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both Innovative Solutions 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 Innovative Solutions and Astronics Corp 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 Corp Cl, you can compare the effects of market volatilities on Innovative Solutions 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 Innovative Solutions with a short position of Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Solutions and Astronics Corp.
Diversification Opportunities for Innovative Solutions and Astronics Corp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innovative and Astronics is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Solutions and 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 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 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 Innovative Solutions i.e., Innovative Solutions and Astronics Corp go up and down completely randomly.
Pair Corralation between Innovative Solutions and Astronics Corp
Given the investment horizon of 90 days Innovative Solutions is expected to generate 29.44 times less return on investment than Astronics Corp. But when comparing it to its historical volatility, Innovative Solutions and is 1.7 times less risky than Astronics Corp. It trades about 0.0 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 867.00 in Astronics Corp Cl on August 26, 2024 and sell it today you would earn a total of 848.00 from holding Astronics Corp Cl or generate 97.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.7% |
| Values | Daily Returns |
Innovative Solutions and vs. Astronics Corp Cl
Performance |
| Timeline |
| Innovative Solutions and |
| Astronics Corp Cl |
Innovative Solutions and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Solutions and Astronics Corp
The main advantage of trading using opposite Innovative Solutions and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Solutions 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.| Innovative Solutions vs. Park Electrochemical | Innovative Solutions vs. VSE Corporation | Innovative Solutions vs. Curtiss Wright | Innovative Solutions vs. Ducommun Incorporated |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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