Pair Correlation Between DOW and Curtiss Wright

This module allows you to analyze existing cross correlation between DOW and Curtiss Wright Corporation. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Curtiss Wright. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Curtiss Wright.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Curtiss Wright Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.12 times more return on investment than Curtiss Wright. However, DOW is 8.48 times less risky than Curtiss Wright. It trades about 0.73 of its potential returns per unit of risk. Curtiss Wright Corporation is currently generating about 0.01 per unit of risk. If you would invest  2,234,959  in DOW on September 22, 2017 and sell it today you would earn a total of  97,904  from holding DOW or generate 4.38% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Curtiss Wright
0.91

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy4.1%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Curtiss Wright Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and DOW 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 DOW 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 DOW i.e. DOW and Curtiss Wright go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns