Correlation Between Airgain and AstroNova
Can any of the company-specific risk be diversified away by investing in both Airgain and AstroNova 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 Airgain and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airgain and AstroNova, you can compare the effects of market volatilities on Airgain and AstroNova 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 Airgain with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airgain and AstroNova.
Diversification Opportunities for Airgain and AstroNova
Good diversification
The 3 months correlation between Airgain and AstroNova is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Airgain and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and Airgain 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 Airgain are associated (or correlated) with AstroNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstroNova has no effect on the direction of Airgain i.e., Airgain and AstroNova go up and down completely randomly.
Pair Corralation between Airgain and AstroNova
Given the investment horizon of 90 days Airgain is expected to generate 1.8 times more return on investment than AstroNova. However, Airgain is 1.8 times more volatile than AstroNova. It trades about -0.01 of its potential returns per unit of risk. AstroNova is currently generating about -0.22 per unit of risk. If you would invest 535.00 in Airgain on January 20, 2024 and sell it today you would lose (6.00) from holding Airgain or give up 1.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Airgain vs. AstroNova
Performance |
Timeline |
Airgain |
AstroNova |
Airgain and AstroNova Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Airgain and AstroNova
The main advantage of trading using opposite Airgain and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airgain position performs unexpectedly, AstroNova 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 AstroNova will offset losses from the drop in AstroNova's long position.Airgain vs. Maximus | Airgain vs. Network 1 Technologies | Airgain vs. First Advantage Corp | Airgain vs. BrightView Holdings |
AstroNova vs. LG Display Co | AstroNova vs. Sony Corp | AstroNova vs. Sonos Inc | AstroNova vs. Vizio Holding Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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