Correlation Between Curtiss Motorcycles and LCI Industries
Can any of the company-specific risk be diversified away by investing in both Curtiss Motorcycles and LCI Industries 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 Motorcycles and LCI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Motorcycles and LCI Industries, you can compare the effects of market volatilities on Curtiss Motorcycles and LCI Industries 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 Motorcycles with a short position of LCI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Motorcycles and LCI Industries.
Diversification Opportunities for Curtiss Motorcycles and LCI Industries
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Curtiss and LCI is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Motorcycles and LCI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LCI Industries and Curtiss Motorcycles 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 Motorcycles are associated (or correlated) with LCI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LCI Industries has no effect on the direction of Curtiss Motorcycles i.e., Curtiss Motorcycles and LCI Industries go up and down completely randomly.
Pair Corralation between Curtiss Motorcycles and LCI Industries
Given the investment horizon of 90 days Curtiss Motorcycles is expected to under-perform the LCI Industries. In addition to that, Curtiss Motorcycles is 2.48 times more volatile than LCI Industries. It trades about -0.13 of its total potential returns per unit of risk. LCI Industries is currently generating about -0.02 per unit of volatility. If you would invest 9,482 in LCI Industries on March 10, 2025 and sell it today you would lose (563.00) from holding LCI Industries or give up 5.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Motorcycles vs. LCI Industries
Performance |
| Timeline |
| Curtiss Motorcycles |
| LCI Industries |
Curtiss Motorcycles and LCI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Motorcycles and LCI Industries
The main advantage of trading using opposite Curtiss Motorcycles and LCI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Motorcycles position performs unexpectedly, LCI Industries 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 LCI Industries will offset losses from the drop in LCI Industries' long position.| Curtiss Motorcycles vs. Life Electric Vehicles | Curtiss Motorcycles vs. Evil Empire Designs | Curtiss Motorcycles vs. Twin Vee Powercats | Curtiss Motorcycles vs. LCI Industries |
| LCI Industries vs. MCBC Holdings | LCI Industries vs. BRP Inc | LCI Industries vs. Malibu Boats | LCI Industries vs. Winnebago Industries |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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