Correlation Between Lilium NV and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Lilium NV 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 Lilium NV and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lilium NV and Curtiss Wright, you can compare the effects of market volatilities on Lilium NV 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 Lilium NV with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium NV and Curtiss Wright.
Diversification Opportunities for Lilium NV and Curtiss Wright
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lilium and Curtiss is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lilium NV and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Lilium NV 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 Lilium NV 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 Lilium NV i.e., Lilium NV and Curtiss Wright go up and down completely randomly.
Pair Corralation between Lilium NV and Curtiss Wright
Given the investment horizon of 90 days Lilium NV is expected to generate 13.94 times more return on investment than Curtiss Wright. However, Lilium NV is 13.94 times more volatile than Curtiss Wright. It trades about 0.1 of its potential returns per unit of risk. Curtiss Wright is currently generating about 0.19 per unit of risk. If you would invest 10.00 in Lilium NV on September 1, 2024 and sell it today you would lose (1.37) from holding Lilium NV or give up 13.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lilium NV vs. Curtiss Wright
Performance |
| Timeline |
| Lilium NV |
| Curtiss Wright |
Lilium NV and Curtiss Wright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium NV and Curtiss Wright
The main advantage of trading using opposite Lilium NV and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium NV 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.| Lilium NV vs. Vertical Aerospace | Lilium NV vs. Ehang Holdings | Lilium NV vs. Rocket Lab USA | Lilium NV vs. Archer Aviation |
| Curtiss Wright vs. Archer Aviation | Curtiss Wright vs. Rocket Lab USA | Curtiss Wright vs. Lilium NV | Curtiss Wright vs. HEICO |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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