Correlation Between Curtiss Wright and Beam Global
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Beam Global 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 Beam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Beam Global, you can compare the effects of market volatilities on Curtiss Wright and Beam Global 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 Beam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Beam Global.
Diversification Opportunities for Curtiss Wright and Beam Global
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Curtiss and Beam is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Beam Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beam Global 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 Beam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beam Global has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Beam Global go up and down completely randomly.
Pair Corralation between Curtiss Wright and Beam Global
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 0.61 times more return on investment than Beam Global. However, Curtiss Wright is 1.65 times less risky than Beam Global. It trades about 0.17 of its potential returns per unit of risk. Beam Global is currently generating about -0.18 per unit of risk. If you would invest 34,431 in Curtiss Wright on August 25, 2024 and sell it today you would earn a total of 2,651 from holding Curtiss Wright or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Beam Global
Performance |
| Timeline |
| Curtiss Wright |
| Beam Global |
Curtiss Wright and Beam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Beam Global
The main advantage of trading using opposite Curtiss Wright and Beam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Beam Global 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 Beam Global will offset losses from the drop in Beam Global's long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
| Beam Global vs. Sunrun Inc | Beam Global vs. Emeren Group | Beam Global vs. Sunnova Energy International | Beam Global vs. Maxeon Solar Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |