Correlation Between Westinghouse Air and Space-Communication
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and Space-Communication 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 Space-Communication 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 Space Communication, you can compare the effects of market volatilities on Westinghouse Air and Space-Communication 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 Space-Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and Space-Communication.
Diversification Opportunities for Westinghouse Air and Space-Communication
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westinghouse and Space-Communication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space-Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and Space-Communication go up and down completely randomly.
Pair Corralation between Westinghouse Air and Space-Communication
If you would invest 20,035 in Westinghouse Air Brake on November 3, 2024 and sell it today you would earn a total of 757.00 from holding Westinghouse Air Brake or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Westinghouse Air Brake vs. Space Communication
Performance |
| Timeline |
| Westinghouse Air Brake |
| Space Communication |
Westinghouse Air and Space-Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and Space-Communication
The main advantage of trading using opposite Westinghouse Air and Space-Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, Space-Communication 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 Space-Communication will offset losses from the drop in Space-Communication's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| Space-Communication vs. JetBlue Airways Corp | Space-Communication vs. Alaska Air Group | Space-Communication vs. Definitive Healthcare Corp | Space-Communication vs. Alvotech |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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