Correlation Between Kaman and Safran SA
Can any of the company-specific risk be diversified away by investing in both Kaman and Safran SA 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 Safran SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaman and Safran SA, you can compare the effects of market volatilities on Kaman and Safran SA 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 Safran SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaman and Safran SA.
Diversification Opportunities for Kaman and Safran SA
Weak diversification
The 3 months correlation between Kaman and Safran is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kaman and Safran SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safran SA 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 Safran SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safran SA has no effect on the direction of Kaman i.e., Kaman and Safran SA go up and down completely randomly.
Pair Corralation between Kaman and Safran SA
If you would invest 2,402 in Kaman on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Kaman or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kaman vs. Safran SA
Performance |
| Timeline |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Safran SA |
Kaman and Safran SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaman and Safran SA
The main advantage of trading using opposite Kaman and Safran SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaman position performs unexpectedly, Safran SA 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 Safran SA will offset losses from the drop in Safran SA's long position.| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
| Safran SA vs. Moog Inc | Safran SA vs. BAE Systems PLC | Safran SA vs. Park Electrochemical | Safran SA vs. Triumph Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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