Correlation Between Astra Space and ALABAMA AIRCRAFT

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Can any of the company-specific risk be diversified away by investing in both Astra Space and ALABAMA AIRCRAFT 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 Astra Space and ALABAMA AIRCRAFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Space and ALABAMA AIRCRAFT INDUSTRIES, you can compare the effects of market volatilities on Astra Space and ALABAMA AIRCRAFT 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 Astra Space with a short position of ALABAMA AIRCRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Space and ALABAMA AIRCRAFT.

Diversification Opportunities for Astra Space and ALABAMA AIRCRAFT

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Astra and ALABAMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astra Space Inc and ALABAMA AIRCRAFT INDUSTRIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALABAMA AIRCRAFT IND and Astra Space 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 Astra Space are associated (or correlated) with ALABAMA AIRCRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALABAMA AIRCRAFT IND has no effect on the direction of Astra Space i.e., Astra Space and ALABAMA AIRCRAFT go up and down completely randomly.

Pair Corralation between Astra Space and ALABAMA AIRCRAFT

If you would invest  2.00  in ALABAMA AIRCRAFT INDUSTRIES on April 7, 2022 and sell it today you would earn a total of  0.00  from holding ALABAMA AIRCRAFT INDUSTRIES or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.19%
ValuesDaily Returns

Astra Space Inc  vs.  ALABAMA AIRCRAFT INDUSTRIES

 Performance (%) 
      Timeline 
Astra Space 
Astra Performance
0 of 100
Over the last 90 days Astra Space has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Astra Price Channel

ALABAMA AIRCRAFT IND 
ALABAMA Performance
0 of 100
Over the last 90 days ALABAMA AIRCRAFT INDUSTRIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, ALABAMA AIRCRAFT is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the insiders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0679
Last Split Factor
1:4
Last Split Date
1998-04-15

ALABAMA Price Channel

Astra Space and ALABAMA AIRCRAFT Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Astra Space and ALABAMA AIRCRAFT

The main advantage of trading using opposite Astra Space and ALABAMA AIRCRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Space position performs unexpectedly, ALABAMA AIRCRAFT 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 ALABAMA AIRCRAFT will offset losses from the drop in ALABAMA AIRCRAFT's long position.
The idea behind Astra Space and ALABAMA AIRCRAFT INDUSTRIES 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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