Correlation Between SOUTHERN and Westinghouse Air
Specify exactly 2 symbols:
By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Westinghouse Air Brake, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Westinghouse Air.
Diversification Opportunities for SOUTHERN and Westinghouse Air
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SOUTHERN and Westinghouse is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON 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 SOUTHERN 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 SOUTHERN CALIF EDISON 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 SOUTHERN i.e., SOUTHERN and Westinghouse Air go up and down completely randomly.
Pair Corralation between SOUTHERN and Westinghouse Air
Assuming the 90 days trading horizon SOUTHERN CALIF EDISON is expected to generate 49.31 times more return on investment than Westinghouse Air. However, SOUTHERN is 49.31 times more volatile than Westinghouse Air Brake. It trades about 0.06 of its potential returns per unit of risk. Westinghouse Air Brake is currently generating about 0.16 per unit of risk. If you would invest 10,319 in SOUTHERN CALIF EDISON on September 4, 2024 and sell it today you would earn a total of 133.00 from holding SOUTHERN CALIF EDISON or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.51% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Westinghouse Air Brake
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Westinghouse Air Brake |
SOUTHERN and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Westinghouse Air
The main advantage of trading using opposite SOUTHERN and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. AEP TEX INC | SOUTHERN vs. US BANK NATIONAL | SOUTHERN vs. MetLife | SOUTHERN vs. Jackson Financial |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |