Correlation Between Akoustis Technologies and AstroNova
Can any of the company-specific risk be diversified away by investing in both Akoustis Technologies 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 Akoustis Technologies and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akoustis Technologies and AstroNova, you can compare the effects of market volatilities on Akoustis Technologies 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 Akoustis Technologies with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akoustis Technologies and AstroNova.
Diversification Opportunities for Akoustis Technologies and AstroNova
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Akoustis and AstroNova is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Akoustis Technologies and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and Akoustis Technologies 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 Akoustis Technologies 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 Akoustis Technologies i.e., Akoustis Technologies and AstroNova go up and down completely randomly.
Pair Corralation between Akoustis Technologies and AstroNova
Given the investment horizon of 90 days Akoustis Technologies is expected to under-perform the AstroNova. In addition to that, Akoustis Technologies is 3.69 times more volatile than AstroNova. It trades about -0.06 of its total potential returns per unit of risk. AstroNova is currently generating about 0.05 per unit of volatility. If you would invest 1,423 in AstroNova on January 26, 2024 and sell it today you would earn a total of 321.00 from holding AstroNova or generate 22.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Akoustis Technologies vs. AstroNova
Performance |
Timeline |
Akoustis Technologies |
AstroNova |
Akoustis Technologies and AstroNova Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akoustis Technologies and AstroNova
The main advantage of trading using opposite Akoustis Technologies and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akoustis Technologies 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.Akoustis Technologies vs. Optical Cable | Akoustis Technologies vs. Knowles Cor | Akoustis Technologies vs. Mynaric AG ADR | Akoustis Technologies vs. Ituran Location and |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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