Correlation Between Constellation Brands and NORTHROP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Constellation Brands Class and NORTHROP GRUMMAN P, you can compare the effects of market volatilities on Constellation Brands and NORTHROP 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 Constellation Brands with a short position of NORTHROP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Constellation Brands and NORTHROP.
Diversification Opportunities for Constellation Brands and NORTHROP
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Constellation and NORTHROP is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Constellation Brands Class and NORTHROP GRUMMAN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTHROP GRUMMAN P and Constellation Brands 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 Constellation Brands Class are associated (or correlated) with NORTHROP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTHROP GRUMMAN P has no effect on the direction of Constellation Brands i.e., Constellation Brands and NORTHROP go up and down completely randomly.
Pair Corralation between Constellation Brands and NORTHROP
Considering the 90-day investment horizon Constellation Brands is expected to generate 242.35 times less return on investment than NORTHROP. But when comparing it to its historical volatility, Constellation Brands Class is 84.39 times less risky than NORTHROP. It trades about 0.03 of its potential returns per unit of risk. NORTHROP GRUMMAN P is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,441 in NORTHROP GRUMMAN P on August 31, 2024 and sell it today you would lose (509.00) from holding NORTHROP GRUMMAN P or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.39% |
| Values | Daily Returns |
Constellation Brands Class vs. NORTHROP GRUMMAN P
Performance |
| Timeline |
| Constellation Brands |
| NORTHROP GRUMMAN P |
Constellation Brands and NORTHROP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Constellation Brands and NORTHROP
The main advantage of trading using opposite Constellation Brands and NORTHROP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Constellation Brands position performs unexpectedly, NORTHROP 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 NORTHROP will offset losses from the drop in NORTHROP's long position.| Constellation Brands vs. Brown Forman | Constellation Brands vs. Duckhorn Portfolio | Constellation Brands vs. MGP Ingredients | Constellation Brands vs. Brown Forman |
| NORTHROP vs. Ambev SA ADR | NORTHROP vs. Constellation Brands Class | NORTHROP vs. Commonwealth Bank of | NORTHROP vs. Fomento Economico Mexicano |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |