Correlation Between CAE and Rockwell Collins
Can any of the company-specific risk be diversified away by investing in both CAE and Rockwell Collins 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 CAE and Rockwell Collins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAE Inc and Rockwell Collins, you can compare the effects of market volatilities on CAE and Rockwell Collins 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 CAE with a short position of Rockwell Collins. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAE and Rockwell Collins.
Diversification Opportunities for CAE and Rockwell Collins
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CAE and Rockwell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAE Inc and Rockwell Collins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rockwell Collins and CAE 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 CAE Inc are associated (or correlated) with Rockwell Collins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rockwell Collins has no effect on the direction of CAE i.e., CAE and Rockwell Collins go up and down completely randomly.
Pair Corralation between CAE and Rockwell Collins
If you would invest (100.00) in Rockwell Collins on March 5, 2024 and sell it today you would earn a total of 100.00 from holding Rockwell Collins or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CAE Inc vs. Rockwell Collins
Performance |
| Timeline |
| CAE Inc |
| Rockwell Collins |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CAE and Rockwell Collins Volatility Contrast
Predicted Return Density |
| Returns |