Correlation Between Alabama Aircraft and Kaman
Can any of the company-specific risk be diversified away by investing in both Alabama Aircraft and Kaman 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 Alabama Aircraft and Kaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alabama Aircraft Industries and Kaman, you can compare the effects of market volatilities on Alabama Aircraft and Kaman 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 Alabama Aircraft with a short position of Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alabama Aircraft and Kaman.
Diversification Opportunities for Alabama Aircraft and Kaman
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alabama and Kaman is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alabama Aircraft Industries and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman and Alabama Aircraft 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 Alabama Aircraft Industries are associated (or correlated) with Kaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaman has no effect on the direction of Alabama Aircraft i.e., Alabama Aircraft and Kaman go up and down completely randomly.
Pair Corralation between Alabama Aircraft and Kaman
If you would invest 2,402 in Kaman on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Kaman or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alabama Aircraft Industries vs. Kaman
Performance |
| Timeline |
| Alabama Aircraft Ind |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alabama Aircraft and Kaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alabama Aircraft and Kaman
The main advantage of trading using opposite Alabama Aircraft and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alabama Aircraft position performs unexpectedly, Kaman 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 Kaman will offset losses from the drop in Kaman's long position.| Alabama Aircraft vs. KVH Industries | Alabama Aircraft vs. AerSale Corp | Alabama Aircraft vs. Zedge Inc | Alabama Aircraft vs. BCE Inc |
| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |