Correlation Between SCHMID Group and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both SCHMID Group 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 SCHMID Group and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHMID Group NV and Curtiss Wright, you can compare the effects of market volatilities on SCHMID Group 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 SCHMID Group with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHMID Group and Curtiss Wright.
Diversification Opportunities for SCHMID Group and Curtiss Wright
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCHMID and Curtiss is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding SCHMID Group NV and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and SCHMID Group 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 SCHMID Group 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 SCHMID Group i.e., SCHMID Group and Curtiss Wright go up and down completely randomly.
Pair Corralation between SCHMID Group and Curtiss Wright
Assuming the 90 days horizon SCHMID Group NV is expected to generate 5.73 times more return on investment than Curtiss Wright. However, SCHMID Group is 5.73 times more volatile than Curtiss Wright. It trades about 0.06 of its potential returns per unit of risk. Curtiss Wright is currently generating about 0.1 per unit of risk. If you would invest 25.00 in SCHMID Group NV on August 23, 2024 and sell it today you would earn a total of 0.00 from holding SCHMID Group NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 73.91% |
| Values | Daily Returns |
SCHMID Group NV vs. Curtiss Wright
Performance |
| Timeline |
| SCHMID Group NV |
| Curtiss Wright |
SCHMID Group and Curtiss Wright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHMID Group and Curtiss Wright
The main advantage of trading using opposite SCHMID Group and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHMID Group 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.| SCHMID Group vs. Lion One Metals | SCHMID Group vs. Harmony Gold Mining | SCHMID Group vs. Jutal Offshore Oil | SCHMID Group vs. Ralph Lauren Corp |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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