Correlation Between Westinghouse Air and CITIGROUP
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By analyzing existing cross correlation between Westinghouse Air Brake and CITIGROUP INC 6, you can compare the effects of market volatilities on Westinghouse Air and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and CITIGROUP.
Diversification Opportunities for Westinghouse Air and CITIGROUP
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westinghouse and CITIGROUP is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and CITIGROUP INC 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 6 has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and CITIGROUP go up and down completely randomly.
Pair Corralation between Westinghouse Air and CITIGROUP
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 0.97 times more return on investment than CITIGROUP. However, Westinghouse Air Brake is 1.03 times less risky than CITIGROUP. It trades about 0.26 of its potential returns per unit of risk. CITIGROUP INC 6 is currently generating about -0.03 per unit of risk. If you would invest 18,779 in Westinghouse Air Brake on September 1, 2024 and sell it today you would earn a total of 1,283 from holding Westinghouse Air Brake or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westinghouse Air Brake vs. CITIGROUP INC 6
Performance |
| Timeline |
| Westinghouse Air Brake |
| CITIGROUP INC 6 |
Westinghouse Air and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and CITIGROUP
The main advantage of trading using opposite Westinghouse Air and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. CSX Corporation | Westinghouse Air vs. Norfolk Southern |
| CITIGROUP vs. Parker Hannifin | CITIGROUP vs. Westinghouse Air Brake | CITIGROUP vs. RBC Bearings Incorporated | CITIGROUP vs. Park Ohio 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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