Correlation Between Curtis Mathes and Trans Lux
Can any of the company-specific risk be diversified away by investing in both Curtis Mathes and Trans Lux 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 Curtis Mathes and Trans Lux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtis Mathes Corp and Trans Lux Cp, you can compare the effects of market volatilities on Curtis Mathes and Trans Lux 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 Curtis Mathes with a short position of Trans Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtis Mathes and Trans Lux.
Diversification Opportunities for Curtis Mathes and Trans Lux
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Curtis and Trans is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Curtis Mathes Corp and Trans Lux Cp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trans Lux Cp and Curtis Mathes 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 Curtis Mathes Corp are associated (or correlated) with Trans Lux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trans Lux Cp has no effect on the direction of Curtis Mathes i.e., Curtis Mathes and Trans Lux go up and down completely randomly.
Pair Corralation between Curtis Mathes and Trans Lux
Given the investment horizon of 90 days Curtis Mathes Corp is expected to under-perform the Trans Lux. But the pink sheet apears to be less risky and, when comparing its historical volatility, Curtis Mathes Corp is 1.35 times less risky than Trans Lux. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Trans Lux Cp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Trans Lux Cp on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Trans Lux Cp or generate 35.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 29.29% |
| Values | Daily Returns |
Curtis Mathes Corp vs. Trans Lux Cp
Performance |
| Timeline |
| Curtis Mathes Corp |
| Trans Lux Cp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Curtis Mathes and Trans Lux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtis Mathes and Trans Lux
The main advantage of trading using opposite Curtis Mathes and Trans Lux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtis Mathes position performs unexpectedly, Trans Lux 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 Trans Lux will offset losses from the drop in Trans Lux's long position.| Curtis Mathes vs. Ensurge Micropower ASA | Curtis Mathes vs. Curtiss Motorcycles | Curtis Mathes vs. Trutankless | Curtis Mathes vs. Clean Energy Pathway |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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