Correlation Between Curtiss Wright and Euro Tech
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Euro Tech 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 Euro Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Euro Tech Holdings, you can compare the effects of market volatilities on Curtiss Wright and Euro Tech 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 Euro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Euro Tech.
Diversification Opportunities for Curtiss Wright and Euro Tech
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Curtiss and Euro is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Euro Tech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Tech 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 Euro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Tech Holdings has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Euro Tech go up and down completely randomly.
Pair Corralation between Curtiss Wright and Euro Tech
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 1.15 times more return on investment than Euro Tech. However, Curtiss Wright is 1.15 times more volatile than Euro Tech Holdings. It trades about 0.11 of its potential returns per unit of risk. Euro Tech Holdings is currently generating about -0.16 per unit of risk. If you would invest 35,379 in Curtiss Wright on August 30, 2024 and sell it today you would earn a total of 1,758 from holding Curtiss Wright or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Curtiss Wright vs. Euro Tech Holdings
Performance |
| Timeline |
| Curtiss Wright |
| Euro Tech Holdings |
Curtiss Wright and Euro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Euro Tech
The main advantage of trading using opposite Curtiss Wright and Euro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Euro Tech 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 Euro Tech will offset losses from the drop in Euro Tech's long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
| Euro Tech vs. LiqTech International | Euro Tech vs. TOMI Environmental Solutions | Euro Tech vs. ClearSign Combustion | Euro Tech vs. Vow ASA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |