Correlation Between Energous and Astrotech Corp

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

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

Diversification Opportunities for Energous and Astrotech Corp

0.38

Correlation Coefficient

Energous  Astrotech Corp

Weak diversification

The 3 months correlation between Energous and Astrotech is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Energous and Astrotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrotech Corp and Energous 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 Energous 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 Energous i.e., Energous and Astrotech Corp go up and down completely randomly.

Pair Corralation between Energous and Astrotech Corp

Given the investment horizon of 90 days Energous is expected to under-perform the Astrotech Corp. In addition to that, Energous is 4.2 times more volatile than Astrotech Corp. It trades about -0.22 of its total potential returns per unit of risk. Astrotech Corp is currently generating about -0.02 per unit of volatility. If you would invest  699.00  in Astrotech Corp on December 30, 2024 and sell it today you would lose (46.00) from holding Astrotech Corp or give up 6.58% of portfolio value over 90 days.

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

Energous  vs.  Astrotech Corp

Energous

Risk-Adjusted Performance

Very Weak

Over the last 90 days Energous has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal 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.

Astrotech Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astrotech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Astrotech Corp is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Energous and Astrotech Corp

The main advantage of trading using opposite Energous and Astrotech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energous 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.

The idea behind Energous and Astrotech Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.