Correlation Between Triumph and Astronics

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

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

Diversification Opportunities for Triumph and Astronics

0.3

Correlation Coefficient

Triumph  Astronics

Weak diversification

The 3 months correlation between Triumph and Astronics is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Group and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Triumph 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 Triumph Group are associated (or correlated) with Astronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics has no effect on the direction of Triumph i.e., Triumph and Astronics go up and down completely randomly.

Pair Corralation between Triumph and Astronics

Considering the 90-day investment horizon Triumph Group is expected to generate 29.19 times more return on investment than Astronics. However, Triumph is 29.19 times more volatile than Astronics. It trades about 0.13 of its potential returns per unit of risk. Astronics is currently generating about 0.2 per unit of risk. If you would invest  2,547  in Triumph Group on May 2, 2025 and sell it today you would earn a total of  23,153  from holding Triumph Group or generate 909.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Triumph Group  vs.  Astronics

Triumph Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Triumph Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Triumph demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Astronics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astronics are ranked lower than 16 (%) 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.

Pair Trading with Triumph and Astronics

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

The idea behind Triumph Group and Astronics 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..