Correlation Between Mind Medicine and Westinghouse Air
Can any of the company-specific risk be diversified away by investing in both Mind Medicine 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 Mind Medicine and Westinghouse Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mind Medicine and Westinghouse Air Brake, you can compare the effects of market volatilities on Mind Medicine 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 Mind Medicine with a short position of Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mind Medicine and Westinghouse Air.
Diversification Opportunities for Mind Medicine and Westinghouse Air
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mind and Westinghouse is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mind Medicine 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 Mind Medicine 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 Mind Medicine 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 Mind Medicine i.e., Mind Medicine and Westinghouse Air go up and down completely randomly.
Pair Corralation between Mind Medicine and Westinghouse Air
Given the investment horizon of 90 days Mind Medicine is expected to generate 5.23 times more return on investment than Westinghouse Air. However, Mind Medicine is 5.23 times more volatile than Westinghouse Air Brake. It trades about 0.13 of its potential returns per unit of risk. Westinghouse Air Brake is currently generating about 0.18 per unit of risk. If you would invest 665.00 in Mind Medicine on August 28, 2024 and sell it today you would earn a total of 96.00 from holding Mind Medicine or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mind Medicine vs. Westinghouse Air Brake
Performance |
| Timeline |
| Mind Medicine |
| Westinghouse Air Brake |
Mind Medicine and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mind Medicine and Westinghouse Air
The main advantage of trading using opposite Mind Medicine and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mind Medicine 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.| Mind Medicine vs. Eliem Therapeutics | Mind Medicine vs. HCW Biologics | Mind Medicine vs. Scpharmaceuticals | Mind Medicine vs. Milestone Pharmaceuticals |
| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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