Correlation Between Curtiss Motorcycles and Marine Products
Can any of the company-specific risk be diversified away by investing in both Curtiss Motorcycles and Marine Products 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 Curtiss Motorcycles and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Motorcycles and Marine Products, you can compare the effects of market volatilities on Curtiss Motorcycles and Marine Products 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 Curtiss Motorcycles with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Motorcycles and Marine Products.
Diversification Opportunities for Curtiss Motorcycles and Marine Products
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Curtiss and Marine is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Motorcycles and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and Curtiss Motorcycles 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 Curtiss Motorcycles are associated (or correlated) with Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Curtiss Motorcycles i.e., Curtiss Motorcycles and Marine Products go up and down completely randomly.
Pair Corralation between Curtiss Motorcycles and Marine Products
Given the investment horizon of 90 days Curtiss Motorcycles is expected to under-perform the Marine Products. In addition to that, Curtiss Motorcycles is 9.58 times more volatile than Marine Products. It trades about -0.04 of its total potential returns per unit of risk. Marine Products is currently generating about 0.0 per unit of volatility. If you would invest 917.00 in Marine Products on November 1, 2024 and sell it today you would lose (2.00) from holding Marine Products or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Curtiss Motorcycles vs. Marine Products
Performance |
| Timeline |
| Curtiss Motorcycles |
| Marine Products |
Curtiss Motorcycles and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Motorcycles and Marine Products
The main advantage of trading using opposite Curtiss Motorcycles and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Motorcycles position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Curtiss Motorcycles vs. Life Electric Vehicles | Curtiss Motorcycles vs. Evil Empire Designs | Curtiss Motorcycles vs. Twin Vee Powercats | Curtiss Motorcycles vs. LCI Industries |
| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Malibu Boats | Marine Products vs. Winnebago Industries |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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