Correlation Between Winland Holdings and Astrotech Corp
Can any of the company-specific risk be diversified away by investing in both Winland Holdings and Astrotech 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 Winland Holdings and Astrotech Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winland Holdings and Astrotech Corp, you can compare the effects of market volatilities on Winland Holdings and Astrotech 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 Winland Holdings with a short position of Astrotech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winland Holdings and Astrotech Corp.
Diversification Opportunities for Winland Holdings and Astrotech Corp
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Winland and Astrotech is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Winland Holdings and Astrotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrotech Corp and Winland Holdings 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 Winland Holdings are associated (or correlated) with Astrotech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrotech Corp has no effect on the direction of Winland Holdings i.e., Winland Holdings and Astrotech Corp go up and down completely randomly.
Pair Corralation between Winland Holdings and Astrotech Corp
Given the investment horizon of 90 days Winland Holdings is expected to generate 3.16 times more return on investment than Astrotech Corp. However, Winland Holdings is 3.16 times more volatile than Astrotech Corp. It trades about 0.05 of its potential returns per unit of risk. Astrotech Corp is currently generating about -0.01 per unit of risk. If you would invest 200.00 in Winland Holdings on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Winland Holdings or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 9.29% |
| Values | Daily Returns |
Winland Holdings vs. Astrotech Corp
Performance |
| Timeline |
| Winland Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astrotech Corp |
Winland Holdings and Astrotech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winland Holdings and Astrotech Corp
The main advantage of trading using opposite Winland Holdings and Astrotech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winland Holdings position performs unexpectedly, Astrotech 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 Astrotech Corp will offset losses from the drop in Astrotech Corp's long position.The idea behind Winland Holdings and Astrotech Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Astrotech Corp vs. CPI Aerostructures | Astrotech Corp vs. Tat Techno | Astrotech Corp vs. SIFCO Industries | Astrotech Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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