Correlation Between Westinghouse Air and 25746UDM8
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By analyzing existing cross correlation between Westinghouse Air Brake and D 435, you can compare the effects of market volatilities on Westinghouse Air and 25746UDM8 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 25746UDM8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and 25746UDM8.
Diversification Opportunities for Westinghouse Air and 25746UDM8
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Westinghouse and 25746UDM8 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and D 435 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 25746UDM8 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 25746UDM8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 25746UDM8 has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and 25746UDM8 go up and down completely randomly.
Pair Corralation between Westinghouse Air and 25746UDM8
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 1.21 times more return on investment than 25746UDM8. However, Westinghouse Air is 1.21 times more volatile than D 435. It trades about 0.18 of its potential returns per unit of risk. D 435 is currently generating about 0.02 per unit of risk. If you would invest 11,861 in Westinghouse Air Brake on September 4, 2024 and sell it today you would earn a total of 8,174 from holding Westinghouse Air Brake or generate 68.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Westinghouse Air Brake vs. D 435
Performance |
| Timeline |
| Westinghouse Air Brake |
| 25746UDM8 |
Westinghouse Air and 25746UDM8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and 25746UDM8
The main advantage of trading using opposite Westinghouse Air and 25746UDM8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, 25746UDM8 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 25746UDM8 will offset losses from the drop in 25746UDM8's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| 25746UDM8 vs. AEP TEX INC | 25746UDM8 vs. US BANK NATIONAL | 25746UDM8 vs. MetLife | 25746UDM8 vs. Brera Holdings PLC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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