Correlation Between Curtiss Wright and Geo
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Geo 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 Geo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Geo Group, you can compare the effects of market volatilities on Curtiss Wright and Geo 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 Geo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Geo.
Diversification Opportunities for Curtiss Wright and Geo
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Curtiss and Geo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Geo Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geo 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 Geo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geo Group has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Geo go up and down completely randomly.
Pair Corralation between Curtiss Wright and Geo
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 0.71 times more return on investment than Geo. However, Curtiss Wright is 1.4 times less risky than Geo. It trades about 0.31 of its potential returns per unit of risk. Geo Group is currently generating about -0.11 per unit of risk. If you would invest 31,664 in Curtiss Wright on March 28, 2025 and sell it today you would earn a total of 15,986 from holding Curtiss Wright or generate 50.49% 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. Geo Group
Performance |
| Timeline |
| Curtiss Wright |
| Geo Group |
Curtiss Wright and Geo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Geo
The main advantage of trading using opposite Curtiss Wright and Geo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Geo 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 Geo will offset losses from the drop in Geo's long position.| Curtiss Wright vs. Novocure | Curtiss Wright vs. HubSpot | Curtiss Wright vs. DigitalOcean Holdings | Curtiss Wright vs. Appian Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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