Correlation Between Woodward and Textron
Can any of the company-specific risk be diversified away by investing in both Woodward and Textron 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 Woodward and Textron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woodward and Textron, you can compare the effects of market volatilities on Woodward and Textron 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 Woodward with a short position of Textron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woodward and Textron.
Diversification Opportunities for Woodward and Textron
Good diversification
The 3 months correlation between Woodward and Textron is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Woodward and Textron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Textron and Woodward 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 Woodward are associated (or correlated) with Textron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Textron has no effect on the direction of Woodward i.e., Woodward and Textron go up and down completely randomly.
Pair Corralation between Woodward and Textron
Considering the 90-day investment horizon Woodward is expected to generate 1.13 times more return on investment than Textron. However, Woodward is 1.13 times more volatile than Textron. It trades about 0.03 of its potential returns per unit of risk. Textron is currently generating about 0.02 per unit of risk. If you would invest 25,821 in Woodward on July 26, 2025 and sell it today you would earn a total of 558.00 from holding Woodward or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woodward vs. Textron
Performance |
| Timeline |
| Woodward |
| Textron |
Woodward and Textron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woodward and Textron
The main advantage of trading using opposite Woodward and Textron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woodward position performs unexpectedly, Textron 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 Textron will offset losses from the drop in Textron's long position.| Woodward vs. Textron | Woodward vs. XPO Logistics | Woodward vs. TransUnion | Woodward vs. CH Robinson Worldwide |
| Textron vs. Woodward | Textron vs. Allegion PLC | Textron vs. ZTO Express | Textron vs. Expeditors International of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |