Correlation Between Triumph and Astronics
Can any of the company-specific risk be diversified away by investing in both Triumph 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 Triumph and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Group and Astronics, you can compare the effects of market volatilities on Triumph 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 Triumph with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph and Astronics.
Diversification Opportunities for Triumph and Astronics
Very weak diversification
The 3 months correlation between Triumph and Astronics is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Group and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Triumph 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 Triumph 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 Triumph i.e., Triumph and Astronics go up and down completely randomly.
Pair Corralation between Triumph and Astronics
If you would invest 2.50 in Triumph Group on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Triumph Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Triumph Group vs. Astronics
Performance |
| Timeline |
| Triumph Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astronics |
Triumph and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph and Astronics
The main advantage of trading using opposite Triumph and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph 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.| Triumph vs. Addus HomeCare | Triumph vs. SunLink Health Systems | Triumph vs. Sonida Senior Living | Triumph vs. Boston Properties |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets |