Correlation Between Westinghouse Air and Future Mobility
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and Future Mobility 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 Westinghouse Air and Future Mobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westinghouse Air Brake and Future Mobility Solutions, you can compare the effects of market volatilities on Westinghouse Air and Future Mobility 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 Westinghouse Air with a short position of Future Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and Future Mobility.
Diversification Opportunities for Westinghouse Air and Future Mobility
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westinghouse and Future is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and Future Mobility Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Mobility Solutions and Westinghouse Air 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 Westinghouse Air Brake are associated (or correlated) with Future Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Mobility Solutions has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and Future Mobility go up and down completely randomly.
Pair Corralation between Westinghouse Air and Future Mobility
If you would invest 9,830 in Westinghouse Air Brake on August 31, 2024 and sell it today you would earn a total of 10,232 from holding Westinghouse Air Brake or generate 104.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Westinghouse Air Brake vs. Future Mobility Solutions
Performance |
| Timeline |
| Westinghouse Air Brake |
| Future Mobility Solutions |
Westinghouse Air and Future Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and Future Mobility
The main advantage of trading using opposite Westinghouse Air and Future Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, Future Mobility 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 Future Mobility will offset losses from the drop in Future Mobility's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| Future Mobility vs. National Beverage Corp | Future Mobility vs. Westinghouse Air Brake | Future Mobility vs. Porvair plc | Future Mobility vs. Vodka Brands Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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