Correlation Between New York and Moog

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

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

Diversification Opportunities for New York and Moog

-0.16

Correlation Coefficient

New York  Moog

Good diversification

The 3 months correlation between New and Moog is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding New York Mortgage and Moog Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moog Inc and New York 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 New York Mortgage 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 has no effect on the direction of New York i.e., New York and Moog go up and down completely randomly.

Pair Corralation between New York and Moog

Assuming the 90 days horizon New York Mortgage is expected to generate 0.15 times more return on investment than Moog. However, New York Mortgage is 6.58 times less risky than Moog. It trades about 0.01 of its potential returns per unit of risk. Moog Inc is currently generating about -0.02 per unit of risk. If you would invest  2,459  in New York Mortgage on December 27, 2024 and sell it today you would earn a total of  6.00  from holding New York Mortgage or generate 0.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

New York Mortgage  vs.  Moog Inc

New York Mortgage

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in New York Mortgage are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, New York is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Moog Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moog Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Moog is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with New York and Moog

The main advantage of trading using opposite New York and Moog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York 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 New York Mortgage and Moog Inc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.