Correlation Between Curtiss Wright and Astronics
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Astronics 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 Wright and Astronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Astronics, you can compare the effects of market volatilities on Curtiss Wright and Astronics 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 Wright with a short position of Astronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Astronics.
Diversification Opportunities for Curtiss Wright and Astronics
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Curtiss and Astronics is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Astronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics and Curtiss Wright 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 Wright are associated (or correlated) with Astronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Astronics go up and down completely randomly.
Pair Corralation between Curtiss Wright and Astronics
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 3.05 times less return on investment than Astronics. But when comparing it to its historical volatility, Curtiss Wright is 1.86 times less risky than Astronics. It trades about 0.19 of its potential returns per unit of risk. Astronics is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,576 in Astronics on October 24, 2024 and sell it today you would earn a total of 159.00 from holding Astronics or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Astronics
Performance |
| Timeline |
| Curtiss Wright |
| Astronics |
Curtiss Wright and Astronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Astronics
The main advantage of trading using opposite Curtiss Wright and Astronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Astronics 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 Astronics will offset losses from the drop in Astronics' long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
| Astronics vs. Ducommun Incorporated | Astronics vs. Innovative Solutions and | Astronics vs. National Presto Industries | Astronics vs. Park Electrochemical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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