Correlation Between Conrad Industries and MTU Aero
Can any of the company-specific risk be diversified away by investing in both Conrad Industries and MTU Aero 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 Conrad Industries and MTU Aero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conrad Industries and MTU Aero Engines, you can compare the effects of market volatilities on Conrad Industries and MTU Aero 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 Conrad Industries with a short position of MTU Aero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conrad Industries and MTU Aero.
Diversification Opportunities for Conrad Industries and MTU Aero
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Conrad and MTU is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Conrad Industries and MTU Aero Engines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTU Aero Engines and Conrad Industries 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 Conrad Industries are associated (or correlated) with MTU Aero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTU Aero Engines has no effect on the direction of Conrad Industries i.e., Conrad Industries and MTU Aero go up and down completely randomly.
Pair Corralation between Conrad Industries and MTU Aero
If you would invest 16,368 in MTU Aero Engines on September 1, 2024 and sell it today you would earn a total of 607.00 from holding MTU Aero Engines or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Conrad Industries vs. MTU Aero Engines
Performance |
| Timeline |
| Conrad Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MTU Aero Engines |
Conrad Industries and MTU Aero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conrad Industries and MTU Aero
The main advantage of trading using opposite Conrad Industries and MTU Aero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conrad Industries position performs unexpectedly, MTU Aero 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 MTU Aero will offset losses from the drop in MTU Aero's long position.| Conrad Industries vs. Thales SA ADR | Conrad Industries vs. MTU Aero Engines | Conrad Industries vs. Safran SA | Conrad Industries vs. Leonardo SpA ADR |
| MTU Aero vs. Firan Technology Group | MTU Aero vs. 808 Renewable Energy | MTU Aero vs. Park Electrochemical | MTU Aero vs. Innovative Solutions and |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |