Correlation Between Curtis Mathes and Daktronics

Can any of the company-specific risk be diversified away by investing in both Curtis Mathes and Daktronics 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 Curtis Mathes and Daktronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Curtis Mathes Corp and Daktronics, you can compare the effects of market volatilities on Curtis Mathes and Daktronics 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 Curtis Mathes with a short position of Daktronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtis Mathes and Daktronics.

Diversification Opportunities for Curtis Mathes and Daktronics

-0.43

Correlation Coefficient

Curtis Mathes  Daktronics

Very good diversification

The 3 months correlation between Curtis and Daktronics is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Curtis Mathes Corp and Daktronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daktronics and Curtis Mathes 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 Curtis Mathes Corp are associated (or correlated) with Daktronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daktronics has no effect on the direction of Curtis Mathes i.e., Curtis Mathes and Daktronics go up and down completely randomly.

Pair Corralation between Curtis Mathes and Daktronics

Given the investment horizon of 90 days Curtis Mathes Corp is expected to generate 5.11 times more return on investment than Daktronics. However, Curtis Mathes is 5.11 times more volatile than Daktronics. It trades about 0.13 of its potential returns per unit of risk. Daktronics is currently generating about -0.14 per unit of risk. If you would invest  0.01  in Curtis Mathes Corp on December 4, 2024 and sell it today you would earn a total of  0.01  from holding Curtis Mathes Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.65%
Values	Daily Returns

Curtis Mathes Corp  vs.  Daktronics

Curtis Mathes Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Curtis Mathes Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent fundamental indicators, Curtis Mathes showed solid returns over the last few months and may actually be approaching a breakup point.

Daktronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daktronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Curtis Mathes and Daktronics

The main advantage of trading using opposite Curtis Mathes and Daktronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtis Mathes position performs unexpectedly, Daktronics 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 Daktronics will offset losses from the drop in Daktronics' long position.

The idea behind Curtis Mathes Corp and Daktronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .