Correlation Between Curtiss Wright and Cadre Holdings
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Cadre Holdings 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 Cadre Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Cadre Holdings, you can compare the effects of market volatilities on Curtiss Wright and Cadre Holdings 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 Cadre Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Cadre Holdings.
Diversification Opportunities for Curtiss Wright and Cadre Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Curtiss and Cadre is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Cadre Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadre Holdings 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 Cadre Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadre Holdings has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Cadre Holdings go up and down completely randomly.
Pair Corralation between Curtiss Wright and Cadre Holdings
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 5.1 times less return on investment than Cadre Holdings. But when comparing it to its historical volatility, Curtiss Wright is 2.28 times less risky than Cadre Holdings. It trades about 0.19 of its potential returns per unit of risk. Cadre Holdings is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 3,251 in Cadre Holdings on October 24, 2024 and sell it today you would earn a total of 568.00 from holding Cadre Holdings or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Cadre Holdings
Performance |
| Timeline |
| Curtiss Wright |
| Cadre Holdings |
Curtiss Wright and Cadre Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Cadre Holdings
The main advantage of trading using opposite Curtiss Wright and Cadre Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Cadre Holdings 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 Cadre Holdings will offset losses from the drop in Cadre Holdings' long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
| Cadre Holdings vs. European Wax Center | Cadre Holdings vs. Enfusion | Cadre Holdings vs. CiT Inc | Cadre Holdings vs. Core Main |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |