Correlation Between Ducommun Incorporated and Kaman
Can any of the company-specific risk be diversified away by investing in both Ducommun Incorporated and Kaman 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 Ducommun Incorporated and Kaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ducommun Incorporated and Kaman, you can compare the effects of market volatilities on Ducommun Incorporated and Kaman 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 Ducommun Incorporated with a short position of Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ducommun Incorporated and Kaman.
Diversification Opportunities for Ducommun Incorporated and Kaman
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ducommun and Kaman is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ducommun Incorporated and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman and Ducommun Incorporated 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 Ducommun Incorporated are associated (or correlated) with Kaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaman has no effect on the direction of Ducommun Incorporated i.e., Ducommun Incorporated and Kaman go up and down completely randomly.
Pair Corralation between Ducommun Incorporated and Kaman
If you would invest 6,231 in Ducommun Incorporated on August 23, 2024 and sell it today you would earn a total of 284.00 from holding Ducommun Incorporated or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Ducommun Incorporated vs. Kaman
Performance |
| Timeline |
| Ducommun Incorporated |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ducommun Incorporated and Kaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ducommun Incorporated and Kaman
The main advantage of trading using opposite Ducommun Incorporated and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ducommun Incorporated position performs unexpectedly, Kaman 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 Kaman will offset losses from the drop in Kaman's long position.| Ducommun Incorporated vs. Small Cap Core | Ducommun Incorporated vs. Freedom Holding Corp | Ducommun Incorporated vs. Gfl Environmental Holdings | Ducommun Incorporated vs. Growth Fund Of |
| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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