Correlation Between Astronics and Astronics Corp

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

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

Diversification Opportunities for Astronics and Astronics Corp

0.81

Correlation Coefficient

Astronics  Astronics Corp

Very poor diversification

The 3 months correlation between Astronics and Astronics is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Astronics 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 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 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 Astronics i.e., Astronics and Astronics Corp go up and down completely randomly.

Pair Corralation between Astronics and Astronics Corp

Given the investment horizon of 90 days Astronics is expected to generate 1.26 times less return on investment than Astronics Corp. But when comparing it to its historical volatility, Astronics is 1.31 times less risky than Astronics Corp. It trades about 0.03 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,763  in Astronics Corp Cl on May 9, 2025 and sell it today you would lose (15.00) from holding Astronics Corp Cl or give up 0.54% of portfolio value over 90 days.

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

Astronics  vs.  Astronics Corp Cl

Astronics

Risk-Adjusted Performance

Weak

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

Astronics Corp Cl

Risk-Adjusted Performance

Fair

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 Astronics and Astronics Corp

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

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.