Correlation Between Curtiss Wright and Vanguard Industrials
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright and Vanguard Industrials 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 Vanguard Industrials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Vanguard Industrials Index, you can compare the effects of market volatilities on Curtiss Wright and Vanguard Industrials 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 Vanguard Industrials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Vanguard Industrials.
Diversification Opportunities for Curtiss Wright and Vanguard Industrials
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Curtiss and Vanguard is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Vanguard Industrials Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Industrials 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 Vanguard Industrials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Industrials has no effect on the direction of Curtiss Wright i.e., Curtiss Wright and Vanguard Industrials go up and down completely randomly.
Pair Corralation between Curtiss Wright and Vanguard Industrials
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 1.18 times more return on investment than Vanguard Industrials. However, Curtiss Wright is 1.18 times more volatile than Vanguard Industrials Index. It trades about 0.29 of its potential returns per unit of risk. Vanguard Industrials Index is currently generating about 0.08 per unit of risk. If you would invest 32,520 in Curtiss Wright on March 27, 2025 and sell it today you would earn a total of 15,082 from holding Curtiss Wright or generate 46.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Vanguard Industrials Index
Performance |
| Timeline |
| Curtiss Wright |
| Vanguard Industrials |
Curtiss Wright and Vanguard Industrials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Vanguard Industrials
The main advantage of trading using opposite Curtiss Wright and Vanguard Industrials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright position performs unexpectedly, Vanguard Industrials 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 Vanguard Industrials will offset losses from the drop in Vanguard Industrials' long position.| Curtiss Wright vs. Mercury Systems | Curtiss Wright vs. AAR Corp | Curtiss Wright vs. Ducommun Incorporated | Curtiss Wright vs. Moog Inc |
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 Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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