Correlation Between Coda Octopus and Woodward
Can any of the company-specific risk be diversified away by investing in both Coda Octopus and Woodward 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 Coda Octopus and Woodward into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coda Octopus Group and Woodward, you can compare the effects of market volatilities on Coda Octopus and Woodward 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 Coda Octopus with a short position of Woodward. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coda Octopus and Woodward.
Diversification Opportunities for Coda Octopus and Woodward
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coda and Woodward is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Coda Octopus Group and Woodward in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woodward and Coda Octopus 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 Coda Octopus Group are associated (or correlated) with Woodward. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woodward has no effect on the direction of Coda Octopus i.e., Coda Octopus and Woodward go up and down completely randomly.
Pair Corralation between Coda Octopus and Woodward
Given the investment horizon of 90 days Coda Octopus Group is expected to generate 2.5 times more return on investment than Woodward. However, Coda Octopus is 2.5 times more volatile than Woodward. It trades about 0.03 of its potential returns per unit of risk. Woodward is currently generating about 0.05 per unit of risk. If you would invest 773.00 in Coda Octopus Group on June 13, 2025 and sell it today you would earn a total of 16.00 from holding Coda Octopus Group or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coda Octopus Group vs. Woodward
Performance |
| Timeline |
| Coda Octopus Group |
| Woodward |
Coda Octopus and Woodward Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coda Octopus and Woodward
The main advantage of trading using opposite Coda Octopus and Woodward positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coda Octopus position performs unexpectedly, Woodward 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 Woodward will offset losses from the drop in Woodward's long position.| Coda Octopus vs. Innovative Solutions and | Coda Octopus vs. Park Electrochemical | Coda Octopus vs. Ducommun Incorporated | Coda Octopus vs. National Presto 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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