Correlation Between Curtiss Wright and Ageagle Aerial
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Ageagle Aerial 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 Ageagle Aerial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Ageagle Aerial Systems, you can compare the effects of market volatilities on Curtiss Wright and Ageagle Aerial 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 Ageagle Aerial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Ageagle Aerial.
Diversification Opportunities for Curtiss Wright and Ageagle Aerial
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Curtiss and Ageagle is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Ageagle Aerial Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageagle Aerial Systems 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 Ageagle Aerial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageagle Aerial Systems has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Ageagle Aerial go up and down completely randomly.
Pair Corralation between Curtiss Wright and Ageagle Aerial
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 0.11 times more return on investment than Ageagle Aerial. However, Curtiss Wright is 9.2 times less risky than Ageagle Aerial. It trades about 0.16 of its potential returns per unit of risk. Ageagle Aerial Systems is currently generating about -0.05 per unit of risk. If you would invest 21,844 in Curtiss Wright on August 27, 2024 and sell it today you would earn a total of 15,238 from holding Curtiss Wright or generate 69.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Ageagle Aerial Systems
Performance |
| Timeline |
| Curtiss Wright |
| Ageagle Aerial Systems |
Curtiss Wright and Ageagle Aerial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Ageagle Aerial
The main advantage of trading using opposite Curtiss Wright and Ageagle Aerial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Ageagle Aerial 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 Ageagle Aerial will offset losses from the drop in Ageagle Aerial's long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
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
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges |