Correlation Between Moog and Kaman
Can any of the company-specific risk be diversified away by investing in both Moog 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 Moog and Kaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moog Inc and Kaman, you can compare the effects of market volatilities on Moog 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 Moog with a short position of Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moog and Kaman.
Diversification Opportunities for Moog and Kaman
Very weak diversification
The 3 months correlation between Moog and Kaman is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Moog Inc and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman and Moog 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 Moog Inc 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 Moog i.e., Moog and Kaman go up and down completely randomly.
Pair Corralation between Moog and Kaman
If you would invest 19,077 in Moog Inc on August 28, 2024 and sell it today you would earn a total of 2,390 from holding Moog Inc or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Moog Inc vs. Kaman
Performance |
| Timeline |
| Moog Inc |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Moog and Kaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moog and Kaman
The main advantage of trading using opposite Moog and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moog 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.The idea behind Moog Inc and Kaman pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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