Correlation Between Astronics and RPC

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

By analyzing existing cross correlation between Astronics and RPC Inc, you can compare the effects of market volatilities on Astronics and RPC 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 RPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics and RPC.

Diversification Opportunities for Astronics and RPC

0.63

Correlation Coefficient

Astronics  RPC

Poor diversification

The 3 months correlation between Astronics and RPC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Astronics and RPC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPC Inc 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 RPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPC Inc has no effect on the direction of Astronics i.e., Astronics and RPC go up and down completely randomly.

Pair Corralation between Astronics and RPC

Given the investment horizon of 90 days Astronics is expected to generate 1.14 times more return on investment than RPC. However, Astronics is 1.14 times more volatile than RPC Inc. It trades about 0.23 of its potential returns per unit of risk. RPC Inc is currently generating about 0.21 per unit of risk. If you would invest  4,825  in Astronics on October 18, 2025 and sell it today you would earn a total of  2,416  from holding Astronics or generate 50.07% return on investment over 90 days.

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

Astronics  vs.  RPC Inc

Astronics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astronics are ranked lower than 18 (%) 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.

RPC Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RPC Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, RPC unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astronics and RPC

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

The idea behind Astronics and RPC Inc 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 Global Correlations module to find global opportunities by holding instruments from different markets.