Correlation Between Ducommun Incorporated and Astronics
Can any of the company-specific risk be diversified away by investing in both Ducommun Incorporated and Astronics 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 Ducommun Incorporated and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ducommun Incorporated and Astronics, you can compare the effects of market volatilities on Ducommun Incorporated and Astronics 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 Ducommun Incorporated with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ducommun Incorporated and Astronics.
Diversification Opportunities for Ducommun Incorporated and Astronics
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ducommun and Astronics is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ducommun Incorporated and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Ducommun Incorporated 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 Ducommun Incorporated are associated (or correlated) with Astronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics has no effect on the direction of Ducommun Incorporated i.e., Ducommun Incorporated and Astronics go up and down completely randomly.
Pair Corralation between Ducommun Incorporated and Astronics
Considering the 90-day investment horizon Ducommun Incorporated is expected to generate 1.44 times less return on investment than Astronics. But when comparing it to its historical volatility, Ducommun Incorporated is 1.69 times less risky than Astronics. It trades about 0.2 of its potential returns per unit of risk. Astronics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,403 in Astronics on March 9, 2025 and sell it today you would earn a total of 941.00 from holding Astronics or generate 39.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ducommun Incorporated vs. Astronics
Performance |
| Timeline |
| Ducommun Incorporated |
| Astronics |
Ducommun Incorporated and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ducommun Incorporated and Astronics
The main advantage of trading using opposite Ducommun Incorporated and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ducommun Incorporated position performs unexpectedly, Astronics 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 will offset losses from the drop in Astronics' long position.| Ducommun Incorporated vs. Innovative Solutions and | Ducommun Incorporated vs. National Presto Industries | Ducommun Incorporated vs. Astronics | Ducommun Incorporated vs. Park Electrochemical |
| Astronics vs. Ducommun Incorporated | Astronics vs. Innovative Solutions and | Astronics vs. National Presto Industries | Astronics vs. Park Electrochemical |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |