Correlation Between Westinghouse Air and HUMANA
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By analyzing existing cross correlation between Westinghouse Air Brake and HUMANA INC, you can compare the effects of market volatilities on Westinghouse Air and HUMANA 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 HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and HUMANA.
Diversification Opportunities for Westinghouse Air and HUMANA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Westinghouse and HUMANA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and HUMANA go up and down completely randomly.
Pair Corralation between Westinghouse Air and HUMANA
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 0.94 times more return on investment than HUMANA. However, Westinghouse Air Brake is 1.06 times less risky than HUMANA. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.2 per unit of risk. If you would invest 19,612 in Westinghouse Air Brake on September 20, 2024 and sell it today you would earn a total of 207.00 from holding Westinghouse Air Brake or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Westinghouse Air Brake vs. HUMANA INC
Performance |
| Timeline |
| Westinghouse Air Brake |
| HUMANA INC |
Westinghouse Air and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and HUMANA
The main advantage of trading using opposite Westinghouse Air and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| HUMANA vs. Anheuser Busch Inbev | HUMANA vs. Vita Coco | HUMANA vs. Compania Cervecerias Unidas | HUMANA vs. Westinghouse Air Brake |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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