Correlation Between Sidus Space and Astronics
Can any of the company-specific risk be diversified away by investing in both Sidus Space 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 Sidus Space and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sidus Space and Astronics, you can compare the effects of market volatilities on Sidus Space 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 Sidus Space with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidus Space and Astronics.
Diversification Opportunities for Sidus Space and Astronics
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sidus and Astronics is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sidus Space and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Sidus Space 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 Sidus Space 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 Sidus Space i.e., Sidus Space and Astronics go up and down completely randomly.
Pair Corralation between Sidus Space and Astronics
Given the investment horizon of 90 days Sidus Space is expected to under-perform the Astronics. In addition to that, Sidus Space is 2.4 times more volatile than Astronics. It trades about -0.15 of its total potential returns per unit of risk. Astronics is currently generating about -0.12 per unit of volatility. If you would invest 1,838 in Astronics on August 29, 2024 and sell it today you would lose (272.00) from holding Astronics or give up 14.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidus Space vs. Astronics
Performance |
| Timeline |
| Sidus Space |
| Astronics |
Sidus Space and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidus Space and Astronics
The main advantage of trading using opposite Sidus Space and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidus Space 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.| Sidus Space vs. Intelligent Living Application | Sidus Space vs. Quoin Pharmaceuticals Ltd | Sidus Space vs. Kidpik Corp | Sidus Space vs. Virax Biolabs Group |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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