Correlation Between CI GAMES and Westinghouse Air
Can any of the company-specific risk be diversified away by investing in both CI GAMES and Westinghouse Air 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 CI GAMES and Westinghouse Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI GAMES SA and Westinghouse Air Brake, you can compare the effects of market volatilities on CI GAMES and Westinghouse Air 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 CI GAMES with a short position of Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI GAMES and Westinghouse Air.
Diversification Opportunities for CI GAMES and Westinghouse Air
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CI7 and Westinghouse is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CI GAMES SA and Westinghouse Air Brake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westinghouse Air Brake and CI GAMES 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 CI GAMES SA are associated (or correlated) with Westinghouse Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westinghouse Air Brake has no effect on the direction of CI GAMES i.e., CI GAMES and Westinghouse Air go up and down completely randomly.
Pair Corralation between CI GAMES and Westinghouse Air
Assuming the 90 days horizon CI GAMES SA is expected to under-perform the Westinghouse Air. In addition to that, CI GAMES is 3.19 times more volatile than Westinghouse Air Brake. It trades about -0.03 of its total potential returns per unit of risk. Westinghouse Air Brake is currently generating about 0.18 per unit of volatility. If you would invest 18,645 in Westinghouse Air Brake on September 12, 2024 and sell it today you would earn a total of 770.00 from holding Westinghouse Air Brake or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI GAMES SA vs. Westinghouse Air Brake
Performance |
| Timeline |
| CI GAMES SA |
| Westinghouse Air Brake |
CI GAMES and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI GAMES and Westinghouse Air
The main advantage of trading using opposite CI GAMES and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI GAMES position performs unexpectedly, Westinghouse Air 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 Westinghouse Air will offset losses from the drop in Westinghouse Air's long position.| CI GAMES vs. Haverty Furniture Companies | CI GAMES vs. ETFS Coffee ETC | CI GAMES vs. VARIOUS EATERIES LS | CI GAMES vs. North American Construction |
| Westinghouse Air vs. CSX Corporation | Westinghouse Air vs. Superior Plus Corp | Westinghouse Air vs. SIVERS SEMICONDUCTORS AB | Westinghouse Air vs. Norsk Hydro ASA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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