Correlation Between Astronics and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Astronics and Haier Smart 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 Astronics and Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astronics and Haier Smart Home, you can compare the effects of market volatilities on Astronics and Haier Smart 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 Astronics with a short position of Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astronics and Haier Smart.
Diversification Opportunities for Astronics and Haier Smart
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astronics and Haier is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Astronics and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home and Astronics 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 Astronics are associated (or correlated) with Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Astronics i.e., Astronics and Haier Smart go up and down completely randomly.
Pair Corralation between Astronics and Haier Smart
Given the investment horizon of 90 days Astronics is expected to generate 1.02 times less return on investment than Haier Smart. But when comparing it to its historical volatility, Astronics is 1.65 times less risky than Haier Smart. It trades about 0.12 of its potential returns per unit of risk. Haier Smart Home is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 295.00 in Haier Smart Home on September 10, 2025 and sell it today you would earn a total of 47.00 from holding Haier Smart Home or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astronics vs. Haier Smart Home
Performance |
| Timeline |
| Astronics |
| Haier Smart Home |
Astronics and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astronics and Haier Smart
The main advantage of trading using opposite Astronics and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astronics position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Astronics vs. Cadre Holdings | Astronics vs. Voyager Technologies, | Astronics vs. V2X Inc | Astronics vs. Ducommun Incorporated |
| Haier Smart vs. DENSO | Haier Smart vs. Carnival plc | Haier Smart vs. Amadeus IT Holding | Haier Smart vs. Adidas AG ADR |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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