Correlation Between Astrotech Corp and ESCO Technologies
Can any of the company-specific risk be diversified away by investing in both Astrotech Corp and ESCO Technologies 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 Astrotech Corp and ESCO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrotech Corp and ESCO Technologies, you can compare the effects of market volatilities on Astrotech Corp and ESCO Technologies 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 Astrotech Corp with a short position of ESCO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrotech Corp and ESCO Technologies.
Diversification Opportunities for Astrotech Corp and ESCO Technologies
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astrotech and ESCO is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Astrotech Corp and ESCO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESCO Technologies and Astrotech Corp 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 Astrotech Corp are associated (or correlated) with ESCO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESCO Technologies has no effect on the direction of Astrotech Corp i.e., Astrotech Corp and ESCO Technologies go up and down completely randomly.
Pair Corralation between Astrotech Corp and ESCO Technologies
Given the investment horizon of 90 days Astrotech Corp is expected to under-perform the ESCO Technologies. In addition to that, Astrotech Corp is 1.48 times more volatile than ESCO Technologies. It trades about -0.02 of its total potential returns per unit of risk. ESCO Technologies is currently generating about 0.1 per unit of volatility. If you would invest 10,192 in ESCO Technologies on March 29, 2025 and sell it today you would earn a total of 9,149 from holding ESCO Technologies or generate 89.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
Astrotech Corp vs. ESCO Technologies
Performance |
| Timeline |
| Astrotech Corp |
| ESCO Technologies |
Astrotech Corp and ESCO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astrotech Corp and ESCO Technologies
The main advantage of trading using opposite Astrotech Corp and ESCO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrotech Corp position performs unexpectedly, ESCO Technologies 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 ESCO Technologies will offset losses from the drop in ESCO Technologies' long position.| Astrotech Corp vs. CPI Aerostructures | Astrotech Corp vs. Tat Techno | Astrotech Corp vs. SIFCO Industries | Astrotech Corp vs. Park Electrochemical |
| ESCO Technologies vs. Novanta | ESCO Technologies vs. Sono Tek Corp | ESCO Technologies vs. Itron Inc | ESCO Technologies vs. Badger Meter |
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 CEOs Directory module to screen CEOs from public companies around the world.
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