Correlation Between AstroNova and Conifer Holding

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

By analyzing existing cross correlation between AstroNova and Conifer Holding, you can compare the effects of market volatilities on AstroNova and Conifer Holding 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 AstroNova with a short position of Conifer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and Conifer Holding.

Diversification Opportunities for AstroNova and Conifer Holding

0.75

Correlation Coefficient

AstroNova  Conifer Holding

Poor diversification

The 3 months correlation between AstroNova and Conifer is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and Conifer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holding and AstroNova 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 AstroNova are associated (or correlated) with Conifer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holding has no effect on the direction of AstroNova i.e., AstroNova and Conifer Holding go up and down completely randomly.

Pair Corralation between AstroNova and Conifer Holding

Given the investment horizon of 90 days AstroNova is expected to generate 0.75 times more return on investment than Conifer Holding. However, AstroNova is 1.34 times less risky than Conifer Holding. It trades about -0.2 of its potential returns per unit of risk. Conifer Holding is currently generating about -0.21 per unit of risk. If you would invest  1,236  in AstroNova on December 27, 2024 and sell it today you would lose (376.00) from holding AstroNova or give up 30.42% of portfolio value over 90 days.

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

AstroNova  vs.  Conifer Holding

AstroNova

Risk-Adjusted Performance

Very Weak

Over the last 90 days AstroNova has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Conifer Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Conifer Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with AstroNova and Conifer Holding

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

The idea behind AstroNova and Conifer Holding 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.