Correlation Between Kratos Defense and Astra Space
Can any of the company-specific risk be diversified away by investing in both Kratos Defense and Astra Space 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 Kratos Defense and Astra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kratos Defense Security and Astra Space, you can compare the effects of market volatilities on Kratos Defense and Astra Space 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 Kratos Defense with a short position of Astra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kratos Defense and Astra Space.
Diversification Opportunities for Kratos Defense and Astra Space
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kratos and Astra is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kratos Defense Security and Astra Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Space and Kratos Defense 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 Kratos Defense Security are associated (or correlated) with Astra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Space has no effect on the direction of Kratos Defense i.e., Kratos Defense and Astra Space go up and down completely randomly.
Pair Corralation between Kratos Defense and Astra Space
If you would invest 2,287 in Kratos Defense Security on September 2, 2024 and sell it today you would earn a total of 422.00 from holding Kratos Defense Security or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kratos Defense Security vs. Astra Space
Performance |
| Timeline |
| Kratos Defense Security |
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kratos Defense and Astra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kratos Defense and Astra Space
The main advantage of trading using opposite Kratos Defense and Astra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kratos Defense position performs unexpectedly, Astra Space 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 Astra Space will offset losses from the drop in Astra Space's long position.| Kratos Defense vs. Northrop Grumman | Kratos Defense vs. General Dynamics | Kratos Defense vs. Raytheon Technologies Corp | Kratos Defense vs. Huntington Ingalls Industries |
| Astra Space vs. Virgin Galactic Holdings | Astra Space vs. Planet Labs PBC | Astra Space vs. Eve Holding | Astra Space vs. Redwire Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |