Correlation Between Curtiss Wright and Nauticus Robotics
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Nauticus Robotics 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 Curtiss Wright and Nauticus Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Nauticus Robotics, you can compare the effects of market volatilities on Curtiss Wright and Nauticus Robotics 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 Curtiss Wright with a short position of Nauticus Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Nauticus Robotics.
Diversification Opportunities for Curtiss Wright and Nauticus Robotics
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Curtiss and Nauticus is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Nauticus Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nauticus Robotics and Curtiss Wright 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 Curtiss Wright are associated (or correlated) with Nauticus Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nauticus Robotics has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Nauticus Robotics go up and down completely randomly.
Pair Corralation between Curtiss Wright and Nauticus Robotics
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 0.19 times more return on investment than Nauticus Robotics. However, Curtiss Wright is 5.15 times less risky than Nauticus Robotics. It trades about 0.12 of its potential returns per unit of risk. Nauticus Robotics is currently generating about -0.02 per unit of risk. If you would invest 27,320 in Curtiss Wright on September 24, 2024 and sell it today you would earn a total of 8,102 from holding Curtiss Wright or generate 29.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.43% |
Values | Daily Returns |
Curtiss Wright vs. Nauticus Robotics
Performance |
Timeline |
Curtiss Wright |
Nauticus Robotics |
Curtiss Wright and Nauticus Robotics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Curtiss Wright and Nauticus Robotics
The main advantage of trading using opposite Curtiss Wright and Nauticus Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Nauticus Robotics 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 Nauticus Robotics will offset losses from the drop in Nauticus Robotics' long position.Curtiss Wright vs. GE Aerospace | Curtiss Wright vs. Planet Labs PBC | Curtiss Wright vs. Draganfly | Curtiss Wright vs. Boeing Co |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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