Correlation Between Curtiss Wright and Moog
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Moog 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 Moog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Moog Inc, you can compare the effects of market volatilities on Curtiss Wright and Moog 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 Moog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Moog.
Diversification Opportunities for Curtiss Wright and Moog
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Curtiss and Moog is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Moog Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moog Inc 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 Moog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moog Inc has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Moog go up and down completely randomly.
Pair Corralation between Curtiss Wright and Moog
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 2.06 times less return on investment than Moog. But when comparing it to its historical volatility, Curtiss Wright is 1.89 times less risky than Moog. It trades about 0.13 of its potential returns per unit of risk. Moog Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9,591 in Moog Inc on August 27, 2024 and sell it today you would earn a total of 11,876 from holding Moog Inc or generate 123.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 51.87% |
| Values | Daily Returns |
Curtiss Wright vs. Moog Inc
Performance |
| Timeline |
| Curtiss Wright |
| Moog Inc |
Curtiss Wright and Moog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Moog
The main advantage of trading using opposite Curtiss Wright and Moog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Moog 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 Moog will offset losses from the drop in Moog's long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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