Correlation Between Kaman and Astronics
Can any of the company-specific risk be diversified away by investing in both Kaman 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 Kaman and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaman and Astronics, you can compare the effects of market volatilities on Kaman 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 Kaman with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaman and Astronics.
Diversification Opportunities for Kaman and Astronics
Pay attention - limited upside
The 3 months correlation between Kaman and Astronics is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kaman and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Kaman 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 Kaman 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 Kaman i.e., Kaman and Astronics go up and down completely randomly.
Pair Corralation between Kaman and Astronics
If you would invest 2,402 in Kaman on August 23, 2024 and sell it today you would earn a total of 0.00 from holding Kaman or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Kaman vs. Astronics
Performance |
| Timeline |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astronics |
Kaman and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaman and Astronics
The main advantage of trading using opposite Kaman and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaman 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.| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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