Correlation Between Momentus and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Momentus 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 Momentus and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Momentus and Curtiss Wright, you can compare the effects of market volatilities on Momentus 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 Momentus with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Momentus and Curtiss Wright.
Diversification Opportunities for Momentus and Curtiss Wright
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Momentus and Curtiss is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Momentus and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Momentus 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 Momentus 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 Momentus i.e., Momentus and Curtiss Wright go up and down completely randomly.
Pair Corralation between Momentus and Curtiss Wright
Given the investment horizon of 90 days Momentus is expected to under-perform the Curtiss Wright. In addition to that, Momentus is 8.94 times more volatile than Curtiss Wright. It trades about -0.04 of its total potential returns per unit of risk. Curtiss Wright is currently generating about 0.26 per unit of volatility. If you would invest 23,618 in Curtiss Wright on February 15, 2024 and sell it today you would earn a total of 3,830 from holding Curtiss Wright or generate 16.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Momentus vs. Curtiss Wright
Performance |
Timeline |
Momentus |
Curtiss Wright |
Momentus and Curtiss Wright Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Momentus and Curtiss Wright
The main advantage of trading using opposite Momentus and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Momentus 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.Momentus vs. Mitsubishi UFJ Financial | Momentus vs. LSI Industries | Momentus vs. Vanguard Total Stock | Momentus vs. Monolithic Power Systems |
Curtiss Wright vs. Innovative Solutions and | Curtiss Wright vs. National Presto Industries | Curtiss Wright vs. Hexcel | Curtiss Wright vs. Park Electrochemical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
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 | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |