Correlation Between Westinghouse Air and 25160PAE7
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By analyzing existing cross correlation between Westinghouse Air Brake and DEUTSCHE BK AG, you can compare the effects of market volatilities on Westinghouse Air and 25160PAE7 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 25160PAE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and 25160PAE7.
Diversification Opportunities for Westinghouse Air and 25160PAE7
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westinghouse and 25160PAE7 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and DEUTSCHE BK AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE BK AG 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 25160PAE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE BK AG has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and 25160PAE7 go up and down completely randomly.
Pair Corralation between Westinghouse Air and 25160PAE7
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 1.28 times more return on investment than 25160PAE7. However, Westinghouse Air is 1.28 times more volatile than DEUTSCHE BK AG. It trades about 0.11 of its potential returns per unit of risk. DEUTSCHE BK AG is currently generating about 0.02 per unit of risk. If you would invest 10,254 in Westinghouse Air Brake on October 16, 2024 and sell it today you would earn a total of 9,556 from holding Westinghouse Air Brake or generate 93.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.57% |
| Values | Daily Returns |
Westinghouse Air Brake vs. DEUTSCHE BK AG
Performance |
| Timeline |
| Westinghouse Air Brake |
| DEUTSCHE BK AG |
Westinghouse Air and 25160PAE7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and 25160PAE7
The main advantage of trading using opposite Westinghouse Air and 25160PAE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, 25160PAE7 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 25160PAE7 will offset losses from the drop in 25160PAE7's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| 25160PAE7 vs. Funko Inc | 25160PAE7 vs. Monster Beverage Corp | 25160PAE7 vs. JD Sports Fashion | 25160PAE7 vs. Fomento Economico Mexicano |
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.
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