Correlation Between VSE and Astronics Corp

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

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

Diversification Opportunities for VSE and Astronics Corp

0.44

Correlation Coefficient

VSE  Astronics Corp

Very weak diversification

The 3 months correlation between VSE and Astronics is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding VSE Corp. 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 VSE 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 VSE Corporation 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 VSE i.e., VSE and Astronics Corp go up and down completely randomly.

Pair Corralation between VSE and Astronics Corp

Given the investment horizon of 90 days VSE is expected to generate 3.87 times less return on investment than Astronics Corp. But when comparing it to its historical volatility, VSE Corporation is 1.37 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 0.1 of returns per unit of risk over similar time horizon. If you would invest  4,338  in Astronics Corp Cl on September 12, 2025 and sell it today you would earn a total of  792.00  from holding Astronics Corp Cl or generate 18.26% return on investment over 90 days.

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

VSE Corp.  vs.  Astronics Corp Cl

VSE Corporation

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VSE Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, VSE is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Astronics Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VSE and Astronics Corp

The main advantage of trading using opposite VSE and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VSE 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 VSE Corporation 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.