Correlation Between Dupont De and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Dupont De and Curtiss Wright 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 Dupont De and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Curtiss Wright, you can compare the effects of market volatilities on Dupont De and Curtiss Wright 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 Dupont De with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Curtiss Wright.
Diversification Opportunities for Dupont De and Curtiss Wright
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Curtiss is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Dupont De 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 Dupont De Nemours are associated (or correlated) with Curtiss Wright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtiss Wright has no effect on the direction of Dupont De i.e., Dupont De and Curtiss Wright go up and down completely randomly.
Pair Corralation between Dupont De and Curtiss Wright
Allowing for the 90-day total investment horizon Dupont De is expected to generate 90.23 times less return on investment than Curtiss Wright. But when comparing it to its historical volatility, Dupont De Nemours is 1.27 times less risky than Curtiss Wright. It trades about 0.0 of its potential returns per unit of risk. Curtiss Wright is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 31,548 in Curtiss Wright on August 30, 2024 and sell it today you would earn a total of 5,589 from holding Curtiss Wright or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Curtiss Wright
Performance |
| Timeline |
| Dupont De Nemours |
| Curtiss Wright |
Dupont De and Curtiss Wright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Curtiss Wright
The main advantage of trading using opposite Dupont De and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Curtiss Wright 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 Curtiss Wright will offset losses from the drop in Curtiss Wright's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Air Products and | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |