Correlation Between Sky Harbour and Astronics Corp

Can any of the company-specific risk be diversified away by investing in both Sky Harbour and Astronics 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 Sky Harbour and Astronics Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sky Harbour Group and Astronics Corp Cl, you can compare the effects of market volatilities on Sky Harbour and Astronics 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 Sky Harbour with a short position of Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sky Harbour and Astronics Corp.

Diversification Opportunities for Sky Harbour and Astronics Corp

0.17

Correlation Coefficient

Sky Harbour  Astronics Corp

Average diversification

The 3 months correlation between Sky and Astronics is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sky Harbour Group and Astronics Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics Corp Cl and Sky Harbour 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 Sky Harbour Group are associated (or correlated) with Astronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics Corp Cl has no effect on the direction of Sky Harbour i.e., Sky Harbour and Astronics Corp go up and down completely randomly.

Pair Corralation between Sky Harbour and Astronics Corp

Given the investment horizon of 90 days Sky Harbour Group is expected to generate 0.77 times more return on investment than Astronics Corp. However, Sky Harbour Group is 1.3 times less risky than Astronics Corp. It trades about 0.0 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about -0.09 per unit of risk. If you would invest  1,159  in Sky Harbour Group on September 4, 2024 and sell it today you would lose (37.00) from holding Sky Harbour Group or give up 3.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sky Harbour Group  vs.  Astronics Corp Cl

Sky Harbour Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sky Harbour Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Sky Harbour is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Astronics Corp Cl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Astronics Corp Cl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sky Harbour and Astronics Corp

The main advantage of trading using opposite Sky Harbour and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sky Harbour position performs unexpectedly, Astronics 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 Astronics Corp will offset losses from the drop in Astronics Corp's long position.

The idea behind Sky Harbour Group and Astronics Corp Cl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.