Correlation Between OZ Minerals and Westinghouse Air
Can any of the company-specific risk be diversified away by investing in both OZ Minerals 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 OZ Minerals and Westinghouse Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OZ Minerals Limited and Westinghouse Air Brake, you can compare the effects of market volatilities on OZ Minerals 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 OZ Minerals with a short position of Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of OZ Minerals and Westinghouse Air.
Diversification Opportunities for OZ Minerals and Westinghouse Air
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OZMLF and Westinghouse is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding OZ Minerals Limited 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 OZ Minerals 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 OZ Minerals Limited 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 OZ Minerals i.e., OZ Minerals and Westinghouse Air go up and down completely randomly.
Pair Corralation between OZ Minerals and Westinghouse Air
If you would invest 19,066 in Westinghouse Air Brake on August 29, 2024 and sell it today you would earn a total of 887.00 from holding Westinghouse Air Brake or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
OZ Minerals Limited vs. Westinghouse Air Brake
Performance |
| Timeline |
| OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Westinghouse Air Brake |
OZ Minerals and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OZ Minerals and Westinghouse Air
The main advantage of trading using opposite OZ Minerals and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OZ Minerals 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.| OZ Minerals vs. Stepan Company | OZ Minerals vs. Ryanair Holdings PLC | OZ Minerals vs. Verra Mobility Corp | OZ Minerals vs. JD Sports Fashion |
| Westinghouse Air vs. LB Foster | Westinghouse Air vs. Norfolk Southern | Westinghouse Air vs. Canadian Pacific Railway |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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