Correlation Between Tat Techno and Astrotech Corp
Can any of the company-specific risk be diversified away by investing in both Tat Techno and Astrotech Corp 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 Tat Techno and Astrotech Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tat Techno and Astrotech Corp, you can compare the effects of market volatilities on Tat Techno and Astrotech Corp 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 Tat Techno with a short position of Astrotech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tat Techno and Astrotech Corp.
Diversification Opportunities for Tat Techno and Astrotech Corp
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tat and Astrotech is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tat Techno and Astrotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrotech Corp and Tat Techno 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 Tat Techno are associated (or correlated) with Astrotech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrotech Corp has no effect on the direction of Tat Techno i.e., Tat Techno and Astrotech Corp go up and down completely randomly.
Pair Corralation between Tat Techno and Astrotech Corp
Given the investment horizon of 90 days Tat Techno is expected to generate 2.12 times more return on investment than Astrotech Corp. However, Tat Techno is 2.12 times more volatile than Astrotech Corp. It trades about 0.06 of its potential returns per unit of risk. Astrotech Corp is currently generating about -0.08 per unit of risk. If you would invest 2,748 in Tat Techno on March 31, 2025 and sell it today you would earn a total of 271.00 from holding Tat Techno or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tat Techno vs. Astrotech Corp
Performance |
| Timeline |
| Tat Techno |
| Astrotech Corp |
Tat Techno and Astrotech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tat Techno and Astrotech Corp
The main advantage of trading using opposite Tat Techno and Astrotech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tat Techno position performs unexpectedly, Astrotech Corp 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 Astrotech Corp will offset losses from the drop in Astrotech Corp's long position.| Tat Techno vs. Innovative Solutions and | Tat Techno vs. CPI Aerostructures | Tat Techno vs. Air Industries Group | Tat Techno vs. Ballistic Recovery Systems |
| Astrotech Corp vs. CPI Aerostructures | Astrotech Corp vs. Tat Techno | Astrotech Corp vs. SIFCO Industries | Astrotech Corp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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