Correlation Between Curtiss Wright and Enerpac Tool
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Enerpac Tool 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 Enerpac Tool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Enerpac Tool Group, you can compare the effects of market volatilities on Curtiss Wright and Enerpac Tool 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 Enerpac Tool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Enerpac Tool.
Diversification Opportunities for Curtiss Wright and Enerpac Tool
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Curtiss and Enerpac is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Enerpac Tool Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerpac Tool Group 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 Enerpac Tool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerpac Tool Group has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Enerpac Tool go up and down completely randomly.
Pair Corralation between Curtiss Wright and Enerpac Tool
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 0.71 times more return on investment than Enerpac Tool. However, Curtiss Wright is 1.4 times less risky than Enerpac Tool. It trades about 0.19 of its potential returns per unit of risk. Enerpac Tool Group is currently generating about 0.13 per unit of risk. If you would invest 19,931 in Curtiss Wright on January 20, 2024 and sell it today you would earn a total of 4,922 from holding Curtiss Wright or generate 24.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Curtiss Wright vs. Enerpac Tool Group
Performance |
| Timeline |
| Curtiss Wright |
| Enerpac Tool Group |
Curtiss Wright and Enerpac Tool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Enerpac Tool
The main advantage of trading using opposite Curtiss Wright and Enerpac Tool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Enerpac Tool 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 Enerpac Tool will offset losses from the drop in Enerpac Tool's long position.| Curtiss Wright vs. Novocure | Curtiss Wright vs. HubSpot | Curtiss Wright vs. DigitalOcean Holdings | Curtiss Wright vs. Appian Corp |
| Enerpac Tool vs. Emerson Electric | Enerpac Tool vs. Smith AO | Enerpac Tool vs. Eaton PLC | Enerpac Tool vs. Cummins |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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