Correlation Between Daktronics and Curtis Mathes

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

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

Diversification Opportunities for Daktronics and Curtis Mathes

-0.83

Correlation Coefficient

Daktronics  Curtis Mathes

Pay attention - limited upside

The 3 months correlation between Daktronics and Curtis is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Daktronics and Curtis Mathes Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtis Mathes Corp and Daktronics 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 Daktronics are associated (or correlated) with Curtis Mathes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtis Mathes Corp has no effect on the direction of Daktronics i.e., Daktronics and Curtis Mathes go up and down completely randomly.

Pair Corralation between Daktronics and Curtis Mathes

Given the investment horizon of 90 days Daktronics is expected to under-perform the Curtis Mathes. But the stock apears to be less risky and, when comparing its historical volatility, Daktronics is 4.36 times less risky than Curtis Mathes. The stock trades about -0.15 of its potential returns per unit of risk. The Curtis Mathes Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Curtis Mathes Corp on December 27, 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	Significant
Accuracy	95.24%
Values	Daily Returns

Daktronics  vs.  Curtis Mathes Corp

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 unfluctuating 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.

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 weak fundamental indicators, Curtis Mathes showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Daktronics and Curtis Mathes

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

The idea behind Daktronics and Curtis Mathes Corp 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.