Correlation Between AstroNova and Socket Mobile

Can any of the company-specific risk be diversified away by investing in both AstroNova and Socket Mobile 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 AstroNova and Socket Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AstroNova and Socket Mobile, you can compare the effects of market volatilities on AstroNova and Socket Mobile 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 AstroNova with a short position of Socket Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and Socket Mobile.

Diversification Opportunities for AstroNova and Socket Mobile

0.06

Correlation Coefficient

AstroNova  Socket Mobile

Significant diversification

The 3 months correlation between AstroNova and Socket is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and Socket Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socket Mobile and AstroNova 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 AstroNova are associated (or correlated) with Socket Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socket Mobile has no effect on the direction of AstroNova i.e., AstroNova and Socket Mobile go up and down completely randomly.

Pair Corralation between AstroNova and Socket Mobile

Given the investment horizon of 90 days AstroNova is expected to generate 1.42 times more return on investment than Socket Mobile. However, AstroNova is 1.42 times more volatile than Socket Mobile. It trades about 0.11 of its potential returns per unit of risk. Socket Mobile is currently generating about -0.11 per unit of risk. If you would invest  902.00  in AstroNova on May 10, 2025 and sell it today you would earn a total of  216.00  from holding AstroNova or generate 23.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AstroNova  vs.  Socket Mobile

AstroNova

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in AstroNova are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, AstroNova unveiled solid returns over the last few months and may actually be approaching a breakup point.

Socket Mobile

Risk-Adjusted Performance

Weakest

Over the last 90 days Socket Mobile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AstroNova and Socket Mobile

The main advantage of trading using opposite AstroNova and Socket Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstroNova position performs unexpectedly, Socket Mobile 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 Socket Mobile will offset losses from the drop in Socket Mobile's long position.

The idea behind AstroNova and Socket Mobile 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.

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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..