Correlation Between VirTra and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both VirTra and Astronics Corp 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 VirTra and Astronics Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VirTra Inc and Astronics Corp Cl, you can compare the effects of market volatilities on VirTra and Astronics Corp 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 VirTra with a short position of Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirTra and Astronics Corp.
Diversification Opportunities for VirTra and Astronics Corp
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VirTra and Astronics is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding VirTra Inc and Astronics Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics Corp Cl and VirTra 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 VirTra Inc are associated (or correlated) with Astronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics Corp Cl has no effect on the direction of VirTra i.e., VirTra and Astronics Corp go up and down completely randomly.
Pair Corralation between VirTra and Astronics Corp
Given the investment horizon of 90 days VirTra is expected to generate 1.3 times less return on investment than Astronics Corp. In addition to that, VirTra is 1.01 times more volatile than Astronics Corp Cl. It trades about 0.04 of its total potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.06 per unit of volatility. If you would invest 867.00 in Astronics Corp Cl on August 26, 2024 and sell it today you would earn a total of 848.00 from holding Astronics Corp Cl or generate 97.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.7% |
| Values | Daily Returns |
VirTra Inc vs. Astronics Corp Cl
Performance |
| Timeline |
| VirTra Inc |
| Astronics Corp Cl |
VirTra and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VirTra and Astronics Corp
The main advantage of trading using opposite VirTra and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VirTra position performs unexpectedly, Astronics Corp 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 Corp will offset losses from the drop in Astronics Corp's long position.| VirTra vs. Innovative Solutions and | VirTra vs. Park Electrochemical | VirTra vs. Ducommun Incorporated | VirTra vs. National Presto Industries |
| Astronics Corp vs. Firan Technology Group | Astronics Corp vs. 808 Renewable Energy | Astronics Corp vs. Park Electrochemical | Astronics Corp vs. Innovative Solutions and |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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