Correlation Between Artesian Resources and Astronics Corp

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

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

Diversification Opportunities for Artesian Resources and Astronics Corp

-0.29

Correlation Coefficient

Artesian Resources  Astronics Corp

Very good diversification

The 3 months correlation between Artesian and Astronics is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Artesian Resources 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 Artesian Resources 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 Artesian Resources 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 Artesian Resources i.e., Artesian Resources and Astronics Corp go up and down completely randomly.

Pair Corralation between Artesian Resources and Astronics Corp

Assuming the 90 days horizon Artesian Resources is expected to under-perform the Astronics Corp. But the stock apears to be less risky and, when comparing its historical volatility, Artesian Resources is 4.84 times less risky than Astronics Corp. The stock trades about -0.02 of its potential returns per unit of risk. The Astronics Corp Cl is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,160  in Astronics Corp Cl on May 27, 2025 and sell it today you would earn a total of  76.00  from holding Astronics Corp Cl or generate 2.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Artesian Resources  vs.  Astronics Corp Cl

Artesian Resources

Risk-Adjusted Performance

Weakest

Over the last 90 days Artesian Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Artesian Resources is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Astronics Corp Cl

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Astronics Corp Cl are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Astronics Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Artesian Resources and Astronics Corp

The main advantage of trading using opposite Artesian Resources and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artesian Resources 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.

The idea behind Artesian Resources and Astronics Corp Cl 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.