Correlation Between Westinghouse Air and 404119BU2
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By analyzing existing cross correlation between Westinghouse Air Brake and HCA INC 45, you can compare the effects of market volatilities on Westinghouse Air and 404119BU2 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 404119BU2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and 404119BU2.
Diversification Opportunities for Westinghouse Air and 404119BU2
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Westinghouse and 404119BU2 is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and HCA INC 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA INC 45 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 404119BU2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA INC 45 has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and 404119BU2 go up and down completely randomly.
Pair Corralation between Westinghouse Air and 404119BU2
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 3.49 times more return on investment than 404119BU2. However, Westinghouse Air is 3.49 times more volatile than HCA INC 45. It trades about 0.11 of its potential returns per unit of risk. HCA INC 45 is currently generating about 0.01 per unit of risk. If you would invest 10,179 in Westinghouse Air Brake on September 3, 2024 and sell it today you would earn a total of 9,883 from holding Westinghouse Air Brake or generate 97.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Westinghouse Air Brake vs. HCA INC 45
Performance |
| Timeline |
| Westinghouse Air Brake |
| HCA INC 45 |
Westinghouse Air and 404119BU2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and 404119BU2
The main advantage of trading using opposite Westinghouse Air and 404119BU2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, 404119BU2 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 404119BU2 will offset losses from the drop in 404119BU2's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| 404119BU2 vs. Westinghouse Air Brake | 404119BU2 vs. Papaya Growth Opportunity | 404119BU2 vs. Cebu Air ADR | 404119BU2 vs. Mesa Air Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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