Correlation Between Curtiss Wright and Purecycle Technologies
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Purecycle Technologies 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 Purecycle Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Purecycle Technologies Holdings, you can compare the effects of market volatilities on Curtiss Wright and Purecycle Technologies 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 Purecycle Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Purecycle Technologies.
Diversification Opportunities for Curtiss Wright and Purecycle Technologies
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Curtiss and Purecycle is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Purecycle Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Purecycle Technologies 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 Purecycle Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Purecycle Technologies has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Purecycle Technologies go up and down completely randomly.
Pair Corralation between Curtiss Wright and Purecycle Technologies
Allowing for the 90-day total investment horizon Curtiss Wright is expected to under-perform the Purecycle Technologies. In addition to that, Curtiss Wright is 1.16 times more volatile than Purecycle Technologies Holdings. It trades about -0.19 of its total potential returns per unit of risk. Purecycle Technologies Holdings is currently generating about -0.04 per unit of volatility. If you would invest 958.00 in Purecycle Technologies Holdings on November 18, 2024 and sell it today you would lose (27.00) from holding Purecycle Technologies Holdings or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Purecycle Technologies Holding
Performance |
| Timeline |
| Curtiss Wright |
| Purecycle Technologies |
Curtiss Wright and Purecycle Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Purecycle Technologies
The main advantage of trading using opposite Curtiss Wright and Purecycle Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Purecycle Technologies 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 Purecycle Technologies will offset losses from the drop in Purecycle Technologies' long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
| Purecycle Technologies vs. PureCycle Technologies | Purecycle Technologies vs. Aker Carbon Capture | Purecycle Technologies vs. Federal Signal | Purecycle Technologies vs. CECO Environmental Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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