Correlation Between Astronics and Artesian Resources

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

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

Diversification Opportunities for Astronics and Artesian Resources

0.42

Correlation Coefficient

Astronics  Artesian Resources

Very weak diversification

The 3 months correlation between Astronics and Artesian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Astronics and Artesian Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artesian Resources and Astronics 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 Astronics are associated (or correlated) with Artesian Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artesian Resources has no effect on the direction of Astronics i.e., Astronics and Artesian Resources go up and down completely randomly.

Pair Corralation between Astronics and Artesian Resources

If you would invest  3,612  in Astronics on July 1, 2025 and sell it today you would earn a total of  792.00  from holding Astronics or generate 21.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Astronics  vs.  Artesian Resources

Astronics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astronics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Astronics displayed solid returns over the last few months and may actually be approaching a breakup point.

Artesian Resources

Risk-Adjusted Performance

Weak

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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Astronics and Artesian Resources

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

The idea behind Astronics and Artesian Resources 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.