Correlation Between PME and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both PME 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 PME and Astronics Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PME Inc and Astronics Corp Cl, you can compare the effects of market volatilities on PME 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 PME with a short position of Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PME and Astronics Corp.
Diversification Opportunities for PME and Astronics Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PME and Astronics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PME Inc 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 PME 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 PME Inc 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 PME i.e., PME and Astronics Corp go up and down completely randomly.
Pair Corralation between PME and Astronics Corp
Given the investment horizon of 90 days PME Inc is expected to generate 9.69 times more return on investment than Astronics Corp. However, PME is 9.69 times more volatile than Astronics Corp Cl. It trades about 0.04 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.05 per unit of risk. If you would invest 0.00 in PME Inc on September 2, 2024 and sell it today you would earn a total of 0.01 from holding PME Inc or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 82.66% |
| Values | Daily Returns |
PME Inc vs. Astronics Corp Cl
Performance |
| Timeline |
| PME Inc |
| Astronics Corp Cl |
PME and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PME and Astronics Corp
The main advantage of trading using opposite PME and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PME 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.| PME vs. Firan Technology Group | PME vs. 808 Renewable Energy | PME vs. Park Electrochemical | PME vs. Innovative Solutions and |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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