Correlation Between Curtiss Wright and Ampco Pittsburgh
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Ampco Pittsburgh 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 Ampco Pittsburgh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Ampco Pittsburgh, you can compare the effects of market volatilities on Curtiss Wright and Ampco Pittsburgh 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 Ampco Pittsburgh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Ampco Pittsburgh.
Diversification Opportunities for Curtiss Wright and Ampco Pittsburgh
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Curtiss and Ampco is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Ampco Pittsburgh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampco Pittsburgh 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 Ampco Pittsburgh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampco Pittsburgh has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Ampco Pittsburgh go up and down completely randomly.
Pair Corralation between Curtiss Wright and Ampco Pittsburgh
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 0.16 times more return on investment than Ampco Pittsburgh. However, Curtiss Wright is 6.13 times less risky than Ampco Pittsburgh. It trades about 0.04 of its potential returns per unit of risk. Ampco Pittsburgh is currently generating about -0.19 per unit of risk. If you would invest 24,925 in Curtiss Wright on January 23, 2024 and sell it today you would earn a total of 170.00 from holding Curtiss Wright or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Ampco Pittsburgh
Performance |
| Timeline |
| Curtiss Wright |
| Ampco Pittsburgh |
Curtiss Wright and Ampco Pittsburgh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Ampco Pittsburgh
The main advantage of trading using opposite Curtiss Wright and Ampco Pittsburgh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Ampco Pittsburgh 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 Ampco Pittsburgh will offset losses from the drop in Ampco Pittsburgh's long position.| Curtiss Wright vs. Novocure | Curtiss Wright vs. HubSpot | Curtiss Wright vs. DigitalOcean Holdings | Curtiss Wright vs. Appian Corp |
| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. ESAB Corp | Ampco Pittsburgh vs. Gulf Island Fabrication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |