Correlation Between Southwestern and CDW Corp
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By analyzing existing cross correlation between Southwestern Energy 495 and CDW Corp, you can compare the effects of market volatilities on Southwestern and CDW Corp 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 Southwestern with a short position of CDW Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwestern and CDW Corp.
Diversification Opportunities for Southwestern and CDW Corp
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Southwestern and CDW is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Southwestern Energy 495 and CDW Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDW Corp and Southwestern 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 Southwestern Energy 495 are associated (or correlated) with CDW Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDW Corp has no effect on the direction of Southwestern i.e., Southwestern and CDW Corp go up and down completely randomly.
Pair Corralation between Southwestern and CDW Corp
Assuming the 90 days trading horizon Southwestern Energy 495 is expected to generate 0.16 times more return on investment than CDW Corp. However, Southwestern Energy 495 is 6.33 times less risky than CDW Corp. It trades about -0.28 of its potential returns per unit of risk. CDW Corp is currently generating about -0.26 per unit of risk. If you would invest 9,985 in Southwestern Energy 495 on September 12, 2024 and sell it today you would lose (120.00) from holding Southwestern Energy 495 or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Southwestern Energy 495 vs. CDW Corp
Performance |
| Timeline |
| Southwestern Energy 495 |
| CDW Corp |
Southwestern and CDW Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwestern and CDW Corp
The main advantage of trading using opposite Southwestern and CDW Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwestern position performs unexpectedly, CDW Corp 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 CDW Corp will offset losses from the drop in CDW Corp's long position.| Southwestern vs. Mesa Air Group | Southwestern vs. Stepan Company | Southwestern vs. Lindblad Expeditions Holdings | Southwestern vs. Delek Logistics Partners |
| CDW Corp vs. CACI International | CDW Corp vs. Jack Henry Associates | CDW Corp vs. Broadridge Financial Solutions | CDW Corp vs. ExlService Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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