Correlation Between Kaman and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Kaman 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 Kaman and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaman and Curtiss Wright, you can compare the effects of market volatilities on Kaman 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 Kaman with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaman and Curtiss Wright.
Diversification Opportunities for Kaman and Curtiss Wright
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kaman and Curtiss is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kaman and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Kaman 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 Kaman 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 Kaman i.e., Kaman and Curtiss Wright go up and down completely randomly.
Pair Corralation between Kaman and Curtiss Wright
If you would invest 21,330 in Curtiss Wright on August 26, 2024 and sell it today you would earn a total of 15,752 from holding Curtiss Wright or generate 73.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Kaman vs. Curtiss Wright
Performance |
| Timeline |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Curtiss Wright |
Kaman and Curtiss Wright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaman and Curtiss Wright
The main advantage of trading using opposite Kaman and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaman 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.| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |