Correlation Between Coda Octopus and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Coda Octopus 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 Coda Octopus and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coda Octopus Group and Curtiss Wright, you can compare the effects of market volatilities on Coda Octopus 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 Coda Octopus with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coda Octopus and Curtiss Wright.
Diversification Opportunities for Coda Octopus and Curtiss Wright
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coda and Curtiss is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Coda Octopus Group and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Coda Octopus 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 Coda Octopus Group 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 Coda Octopus i.e., Coda Octopus and Curtiss Wright go up and down completely randomly.
Pair Corralation between Coda Octopus and Curtiss Wright
Given the investment horizon of 90 days Coda Octopus Group is expected to generate 1.51 times more return on investment than Curtiss Wright. However, Coda Octopus is 1.51 times more volatile than Curtiss Wright. It trades about 0.2 of its potential returns per unit of risk. Curtiss Wright is currently generating about 0.18 per unit of risk. If you would invest 725.00 in Coda Octopus Group on August 29, 2024 and sell it today you would earn a total of 177.00 from holding Coda Octopus Group or generate 24.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Coda Octopus Group vs. Curtiss Wright
Performance |
Timeline |
Coda Octopus Group |
Curtiss Wright |
Coda Octopus and Curtiss Wright Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coda Octopus and Curtiss Wright
The main advantage of trading using opposite Coda Octopus and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coda Octopus 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.Coda Octopus vs. Ducommun Incorporated | Coda Octopus vs. Park Electrochemical | Coda Octopus vs. National Presto Industries | Coda Octopus vs. Astronics |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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