Correlation Between Textron and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Textron and Curtiss Wright 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 Textron and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Textron and Curtiss Wright, you can compare the effects of market volatilities on Textron and Curtiss Wright 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 Textron with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textron and Curtiss Wright.
Diversification Opportunities for Textron and Curtiss Wright
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Textron and Curtiss is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Textron and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Textron 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 Textron are associated (or correlated) with Curtiss Wright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtiss Wright has no effect on the direction of Textron i.e., Textron and Curtiss Wright go up and down completely randomly.
Pair Corralation between Textron and Curtiss Wright
Considering the 90-day investment horizon Textron is expected to generate 8.02 times less return on investment than Curtiss Wright. But when comparing it to its historical volatility, Textron is 1.27 times less risky than Curtiss Wright. It trades about 0.02 of its potential returns per unit of risk. Curtiss Wright is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 49,656 in Curtiss Wright on August 13, 2025 and sell it today you would earn a total of 7,862 from holding Curtiss Wright or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Textron vs. Curtiss Wright
Performance |
| Timeline |
| Textron |
| Curtiss Wright |
Textron and Curtiss Wright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Textron and Curtiss Wright
The main advantage of trading using opposite Textron and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textron position performs unexpectedly, Curtiss Wright 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 Curtiss Wright will offset losses from the drop in Curtiss Wright's long position.| Textron vs. Huntington Ingalls Industries | Textron vs. Woodward | Textron vs. Allegion PLC | Textron vs. Carlisle Companies Incorporated |
| Curtiss Wright vs. Elbit Systems | Curtiss Wright vs. BWX Technologies | Curtiss Wright vs. Woodward | Curtiss Wright vs. AerCap Holdings NV |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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