Correlation Between Strong Global and AstroNova
Can any of the company-specific risk be diversified away by investing in both Strong Global and AstroNova 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 Strong Global and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strong Global Entertainment, and AstroNova, you can compare the effects of market volatilities on Strong Global and AstroNova 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 Strong Global with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strong Global and AstroNova.
Diversification Opportunities for Strong Global and AstroNova
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Strong and AstroNova is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Strong Global Entertainment, and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and Strong Global 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 Strong Global Entertainment, are associated (or correlated) with AstroNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstroNova has no effect on the direction of Strong Global i.e., Strong Global and AstroNova go up and down completely randomly.
Pair Corralation between Strong Global and AstroNova
Considering the 90-day investment horizon Strong Global Entertainment, is expected to generate 4.45 times more return on investment than AstroNova. However, Strong Global is 4.45 times more volatile than AstroNova. It trades about 0.01 of its potential returns per unit of risk. AstroNova is currently generating about 0.03 per unit of risk. If you would invest 371.00 in Strong Global Entertainment, on August 26, 2024 and sell it today you would lose (216.00) from holding Strong Global Entertainment, or give up 58.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 69.82% |
| Values | Daily Returns |
Strong Global Entertainment, vs. AstroNova
Performance |
| Timeline |
| Strong Global Entert |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AstroNova |
Strong Global and AstroNova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strong Global and AstroNova
The main advantage of trading using opposite Strong Global and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strong Global position performs unexpectedly, AstroNova 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 AstroNova will offset losses from the drop in AstroNova's long position.| Strong Global vs. PGE Corp | Strong Global vs. Naked Wines plc | Strong Global vs. Willamette Valley Vineyards | Strong Global vs. Constellation Brands Class |
| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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