Correlation Between CSW Industrials, and Spirit Aerosystems

Can any of the company-specific risk be diversified away by investing in both CSW Industrials, and Spirit Aerosystems 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 CSW Industrials, and Spirit Aerosystems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSW Industrials, and Spirit Aerosystems Holdings, you can compare the effects of market volatilities on CSW Industrials, and Spirit Aerosystems 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 CSW Industrials, with a short position of Spirit Aerosystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSW Industrials, and Spirit Aerosystems.

Diversification Opportunities for CSW Industrials, and Spirit Aerosystems

0.5

Correlation Coefficient

CSW Industrials,  Spirit Aerosystems

Very weak diversification

The 3 months correlation between CSW and Spirit is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials, and Spirit Aerosystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirit Aerosystems and CSW Industrials, 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 CSW Industrials, are associated (or correlated) with Spirit Aerosystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirit Aerosystems has no effect on the direction of CSW Industrials, i.e., CSW Industrials, and Spirit Aerosystems go up and down completely randomly.

Pair Corralation between CSW Industrials, and Spirit Aerosystems

Considering the 90-day investment horizon CSW Industrials, is expected to generate 1.47 times more return on investment than Spirit Aerosystems. However, CSW Industrials, is 1.47 times more volatile than Spirit Aerosystems Holdings. It trades about -0.02 of its potential returns per unit of risk. Spirit Aerosystems Holdings is currently generating about -0.18 per unit of risk. If you would invest  26,841  in CSW Industrials, on August 26, 2025 and sell it today you would lose (941.00) from holding CSW Industrials, or give up 3.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CSW Industrials,  vs.  Spirit Aerosystems Holdings

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CSW Industrials, is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Spirit Aerosystems

Risk-Adjusted Performance

Weakest

Over the last 90 days Spirit Aerosystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with CSW Industrials, and Spirit Aerosystems

The main advantage of trading using opposite CSW Industrials, and Spirit Aerosystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSW Industrials, position performs unexpectedly, Spirit Aerosystems 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 Spirit Aerosystems will offset losses from the drop in Spirit Aerosystems' long position.

The idea behind CSW Industrials, and Spirit Aerosystems Holdings 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.