Correlation Between CMCSA and Wabash National
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By analyzing existing cross correlation between CMCSA 2937 01 NOV 56 and Wabash National, you can compare the effects of market volatilities on CMCSA and Wabash National 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 CMCSA with a short position of Wabash National. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMCSA and Wabash National.
Diversification Opportunities for CMCSA and Wabash National
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CMCSA and Wabash is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CMCSA 2937 01 NOV 56 and Wabash National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabash National and CMCSA 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 CMCSA 2937 01 NOV 56 are associated (or correlated) with Wabash National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabash National has no effect on the direction of CMCSA i.e., CMCSA and Wabash National go up and down completely randomly.
Pair Corralation between CMCSA and Wabash National
Assuming the 90 days trading horizon CMCSA 2937 01 NOV 56 is expected to generate 0.46 times more return on investment than Wabash National. However, CMCSA 2937 01 NOV 56 is 2.17 times less risky than Wabash National. It trades about 0.01 of its potential returns per unit of risk. Wabash National is currently generating about 0.0 per unit of risk. If you would invest 6,298 in CMCSA 2937 01 NOV 56 on September 14, 2024 and sell it today you would earn a total of 62.00 from holding CMCSA 2937 01 NOV 56 or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.95% |
| Values | Daily Returns |
CMCSA 2937 01 NOV 56 vs. Wabash National
Performance |
| Timeline |
| CMCSA 2937 01 |
| Wabash National |
CMCSA and Wabash National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMCSA and Wabash National
The main advantage of trading using opposite CMCSA and Wabash National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMCSA position performs unexpectedly, Wabash National 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 Wabash National will offset losses from the drop in Wabash National's long position.The idea behind CMCSA 2937 01 NOV 56 and Wabash National 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.| Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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