Correlation Between Deluxe and Moog

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

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

Diversification Opportunities for Deluxe and Moog

0.0

Correlation Coefficient

Deluxe  Moog

Pay attention - limited upside

The 3 months correlation between Deluxe and Moog is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deluxe and Moog Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moog Inc A and Deluxe 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 Deluxe are associated (or correlated) with Moog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moog Inc A has no effect on the direction of Deluxe i.e., Deluxe and Moog go up and down completely randomly.

Pair Corralation between Deluxe and Moog

If you would invest (100.00) in Moog Inc A on December 19, 2024 and sell it today you would earn a total of  100.00  from holding Moog Inc A or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Deluxe  vs.  Moog Inc A

Deluxe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Deluxe 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 essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Moog Inc A

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moog Inc A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Moog is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Deluxe and Moog

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

The idea behind Deluxe and Moog Inc A 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 CEOs Directory module to screen CEOs from public companies around the world.