Correlation Between SENSIO Technologies and AstroNova
Can any of the company-specific risk be diversified away by investing in both SENSIO Technologies 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 SENSIO Technologies and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SENSIO Technologies and AstroNova, you can compare the effects of market volatilities on SENSIO Technologies 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 SENSIO Technologies with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENSIO Technologies and AstroNova.
Diversification Opportunities for SENSIO Technologies and AstroNova
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SENSIO and AstroNova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SENSIO Technologies and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and SENSIO Technologies 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 SENSIO Technologies 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 SENSIO Technologies i.e., SENSIO Technologies and AstroNova go up and down completely randomly.
Pair Corralation between SENSIO Technologies and AstroNova
Assuming the 90 days horizon SENSIO Technologies is expected to under-perform the AstroNova. In addition to that, SENSIO Technologies is 2.65 times more volatile than AstroNova. It trades about -0.05 of its total potential returns per unit of risk. AstroNova is currently generating about 0.01 per unit of volatility. If you would invest 1,510 in AstroNova on September 2, 2024 and sell it today you would earn a total of 27.00 from holding AstroNova or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 88.98% |
| Values | Daily Returns |
SENSIO Technologies vs. AstroNova
Performance |
| Timeline |
| SENSIO Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AstroNova |
SENSIO Technologies and AstroNova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENSIO Technologies and AstroNova
The main advantage of trading using opposite SENSIO Technologies and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENSIO Technologies 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.| SENSIO Technologies vs. Iiot Oxys | SENSIO Technologies vs. AstroNova | SENSIO Technologies vs. Red Cat Holdings | SENSIO Technologies vs. IONQ Inc |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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