Correlation Between Curtis Mathes and Trans Lux

Can any of the company-specific risk be diversified away by investing in both Curtis Mathes and Trans Lux 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 Trans Lux 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 Trans Lux Cp, you can compare the effects of market volatilities on Curtis Mathes and Trans Lux 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 Trans Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtis Mathes and Trans Lux.

Diversification Opportunities for Curtis Mathes and Trans Lux

0.16

Correlation Coefficient

Curtis Mathes  Trans Lux

Average diversification

The 3 months correlation between Curtis and Trans is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Curtis Mathes Corp and Trans Lux Cp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trans Lux Cp 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 Trans Lux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trans Lux Cp has no effect on the direction of Curtis Mathes i.e., Curtis Mathes and Trans Lux go up and down completely randomly.

Pair Corralation between Curtis Mathes and Trans Lux

If you would invest  50.00  in Trans Lux Cp on October 20, 2024 and sell it today you would earn a total of  0.00  from holding Trans Lux Cp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Curtis Mathes Corp  vs.  Trans Lux Cp

Curtis Mathes Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Curtis Mathes Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Trans Lux Cp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trans Lux Cp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Trans Lux is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Curtis Mathes and Trans Lux

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

The idea behind Curtis Mathes Corp and Trans Lux Cp 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.