Correlation Between Moog and National Presto

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

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

Diversification Opportunities for Moog and National Presto

-0.43

Correlation Coefficient

Moog  National Presto

Very good diversification

The 3 months correlation between Moog and National is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Moog Inc and National Presto Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Presto Indu and Moog 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 Moog Inc are associated (or correlated) with National Presto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Presto Indu has no effect on the direction of Moog i.e., Moog and National Presto go up and down completely randomly.

Pair Corralation between Moog and National Presto

Assuming the 90 days horizon Moog Inc is expected to generate 0.85 times more return on investment than National Presto. However, Moog Inc is 1.18 times less risky than National Presto. It trades about 0.18 of its potential returns per unit of risk. National Presto Industries is currently generating about -0.05 per unit of risk. If you would invest  19,781  in Moog Inc on September 12, 2025 and sell it today you would earn a total of  4,139  from holding Moog Inc or generate 20.92% return on investment over 90 days.

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

Moog Inc  vs.  National Presto Industries

Moog Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moog Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Moog sustained solid returns over the last few months and may actually be approaching a breakup point.

National Presto Indu

Risk-Adjusted Performance

Weakest

Over the last 90 days National Presto Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Moog and National Presto

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

The idea behind Moog Inc and National Presto Industries 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.