Correlation Between Sky Harbour and Astronics
Can any of the company-specific risk be diversified away by investing in both Sky Harbour 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 Sky Harbour and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sky Harbour Group and Astronics, you can compare the effects of market volatilities on Sky Harbour 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 Sky Harbour with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sky Harbour and Astronics.
Diversification Opportunities for Sky Harbour and Astronics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sky and Astronics is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sky Harbour Group and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Sky Harbour 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 Sky Harbour Group 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 Sky Harbour i.e., Sky Harbour and Astronics go up and down completely randomly.
Pair Corralation between Sky Harbour and Astronics
Given the investment horizon of 90 days Sky Harbour Group is expected to generate 0.89 times more return on investment than Astronics. However, Sky Harbour Group is 1.12 times less risky than Astronics. It trades about -0.08 of its potential returns per unit of risk. Astronics is currently generating about -0.08 per unit of risk. If you would invest 1,300 in Sky Harbour Group on August 25, 2024 and sell it today you would lose (168.00) from holding Sky Harbour Group or give up 12.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sky Harbour Group vs. Astronics
Performance |
| Timeline |
| Sky Harbour Group |
| Astronics |
Sky Harbour and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sky Harbour and Astronics
The main advantage of trading using opposite Sky Harbour and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sky Harbour 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.| Sky Harbour vs. Ducommun Incorporated | Sky Harbour vs. Innovative Solutions and | Sky Harbour vs. National Presto Industries | Sky Harbour 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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