Correlation Between Cadre Holdings and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Cadre Holdings and Curtiss Wright 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 Cadre Holdings and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadre Holdings and Curtiss Wright, you can compare the effects of market volatilities on Cadre Holdings and Curtiss Wright 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 Cadre Holdings with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadre Holdings and Curtiss Wright.
Diversification Opportunities for Cadre Holdings and Curtiss Wright
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cadre and Curtiss is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cadre Holdings and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Cadre Holdings 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 Cadre Holdings are associated (or correlated) with Curtiss Wright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtiss Wright has no effect on the direction of Cadre Holdings i.e., Cadre Holdings and Curtiss Wright go up and down completely randomly.
Pair Corralation between Cadre Holdings and Curtiss Wright
Given the investment horizon of 90 days Cadre Holdings is expected to under-perform the Curtiss Wright. In addition to that, Cadre Holdings is 1.35 times more volatile than Curtiss Wright. It trades about -0.19 of its total potential returns per unit of risk. Curtiss Wright is currently generating about 0.1 per unit of volatility. If you would invest 35,205 in Curtiss Wright on August 23, 2024 and sell it today you would earn a total of 1,550 from holding Curtiss Wright or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadre Holdings vs. Curtiss Wright
Performance |
| Timeline |
| Cadre Holdings |
| Curtiss Wright |
Cadre Holdings and Curtiss Wright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadre Holdings and Curtiss Wright
The main advantage of trading using opposite Cadre Holdings and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadre Holdings position performs unexpectedly, Curtiss Wright 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 Curtiss Wright will offset losses from the drop in Curtiss Wright's long position.| Cadre Holdings vs. European Wax Center | Cadre Holdings vs. Enfusion | Cadre Holdings vs. CiT Inc | Cadre Holdings vs. Core Main |
| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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