Correlation Between Westinghouse Air and LOEWS
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By analyzing existing cross correlation between Westinghouse Air Brake and LOEWS P 375, you can compare the effects of market volatilities on Westinghouse Air and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and LOEWS.
Diversification Opportunities for Westinghouse Air and LOEWS
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Westinghouse and LOEWS is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and LOEWS P 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 375 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 375 has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and LOEWS go up and down completely randomly.
Pair Corralation between Westinghouse Air and LOEWS
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 2.07 times more return on investment than LOEWS. However, Westinghouse Air is 2.07 times more volatile than LOEWS P 375. It trades about 0.26 of its potential returns per unit of risk. LOEWS P 375 is currently generating about -0.21 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westinghouse Air Brake vs. LOEWS P 375
Performance |
| Timeline |
| Westinghouse Air Brake |
| LOEWS P 375 |
Westinghouse Air and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and LOEWS
The main advantage of trading using opposite Westinghouse Air and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. CSX Corporation | Westinghouse Air vs. Norfolk Southern |
| LOEWS vs. JBG SMITH Properties | LOEWS vs. Mid Atlantic Home Health | LOEWS vs. Addus HomeCare | LOEWS vs. Comstock Holding Companies |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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