Correlation Between Haier Smart and Astronics
Can any of the company-specific risk be diversified away by investing in both Haier Smart 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 Haier Smart and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and Astronics, you can compare the effects of market volatilities on Haier Smart 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 Haier Smart with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Astronics.
Diversification Opportunities for Haier Smart and Astronics
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haier and Astronics is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Haier Smart 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 Haier Smart Home 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 Haier Smart i.e., Haier Smart and Astronics go up and down completely randomly.
Pair Corralation between Haier Smart and Astronics
Assuming the 90 days horizon Haier Smart is expected to generate 1.72 times less return on investment than Astronics. In addition to that, Haier Smart is 1.35 times more volatile than Astronics. It trades about 0.07 of its total potential returns per unit of risk. Astronics is currently generating about 0.16 per unit of volatility. If you would invest 3,868 in Astronics on September 5, 2025 and sell it today you would earn a total of 1,304 from holding Astronics or generate 33.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. Astronics
Performance |
| Timeline |
| Haier Smart Home |
| Astronics |
Haier Smart and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and Astronics
The main advantage of trading using opposite Haier Smart and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart 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.| Haier Smart vs. Summit Bank Group | Haier Smart vs. KB Home | Haier Smart vs. Hooker Furniture | Haier Smart vs. ABN AMRO Bank |
| Astronics vs. Haier Smart Home | Astronics vs. Hooker Furniture | Astronics vs. Amer Sports, | Astronics vs. TRI Pointe Homes |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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