Correlation Between Westinghouse Air and 67021CAS6
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By analyzing existing cross correlation between Westinghouse Air Brake and ES 455 01 JUN 52, you can compare the effects of market volatilities on Westinghouse Air and 67021CAS6 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 67021CAS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and 67021CAS6.
Diversification Opportunities for Westinghouse Air and 67021CAS6
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westinghouse and 67021CAS6 is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and ES 455 01 JUN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES 455 01 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 67021CAS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES 455 01 has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and 67021CAS6 go up and down completely randomly.
Pair Corralation between Westinghouse Air and 67021CAS6
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 0.45 times more return on investment than 67021CAS6. However, Westinghouse Air Brake is 2.2 times less risky than 67021CAS6. It trades about 0.11 of its potential returns per unit of risk. ES 455 01 JUN 52 is currently generating about 0.0 per unit of risk. If you would invest 10,242 in Westinghouse Air Brake on September 3, 2024 and sell it today you would earn a total of 9,736 from holding Westinghouse Air Brake or generate 95.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 48.21% |
| Values | Daily Returns |
Westinghouse Air Brake vs. ES 455 01 JUN 52
Performance |
| Timeline |
| Westinghouse Air Brake |
| ES 455 01 |
Westinghouse Air and 67021CAS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and 67021CAS6
The main advantage of trading using opposite Westinghouse Air and 67021CAS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, 67021CAS6 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 67021CAS6 will offset losses from the drop in 67021CAS6's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| 67021CAS6 vs. Uber Technologies | 67021CAS6 vs. Parker Hannifin | 67021CAS6 vs. MYR Group | 67021CAS6 vs. Stratasys |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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