Correlation Between Moog and Triumph
Can any of the company-specific risk be diversified away by investing in both Moog and Triumph 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 Triumph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moog Inc and Triumph Group, you can compare the effects of market volatilities on Moog and Triumph 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 Triumph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moog and Triumph.
Diversification Opportunities for Moog and Triumph
Very weak diversification
The 3 months correlation between Moog and Triumph is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Moog Inc and Triumph Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Group 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 Triumph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Group has no effect on the direction of Moog i.e., Moog and Triumph go up and down completely randomly.
Pair Corralation between Moog and Triumph
Assuming the 90 days horizon Moog is expected to generate 16.0 times less return on investment than Triumph. But when comparing it to its historical volatility, Moog Inc is 20.06 times less risky than Triumph. It trades about 0.07 of its potential returns per unit of risk. Triumph Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 862.00 in Triumph Group on June 4, 2025 and sell it today you would earn a total of 24,838 from holding Triumph Group or generate 2881.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.55% |
| Values | Daily Returns |
Moog Inc vs. Triumph Group
Performance |
| Timeline |
| Moog Inc |
| Triumph Group |
Risk-Adjusted Performance
Good
Weak | Strong |
Moog and Triumph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moog and Triumph
The main advantage of trading using opposite Moog and Triumph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moog position performs unexpectedly, Triumph 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 Triumph will offset losses from the drop in Triumph's long position.The idea behind Moog Inc and Triumph Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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