Correlation Between Westinghouse Air and 694308KC0
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By analyzing existing cross correlation between Westinghouse Air Brake and PCG 44 01 MAR 32, you can compare the effects of market volatilities on Westinghouse Air and 694308KC0 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 694308KC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and 694308KC0.
Diversification Opportunities for Westinghouse Air and 694308KC0
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Westinghouse and 694308KC0 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and PCG 44 01 MAR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCG 44 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 694308KC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCG 44 01 has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and 694308KC0 go up and down completely randomly.
Pair Corralation between Westinghouse Air and 694308KC0
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 0.85 times more return on investment than 694308KC0. However, Westinghouse Air Brake is 1.17 times less risky than 694308KC0. It trades about 0.12 of its potential returns per unit of risk. PCG 44 01 MAR 32 is currently generating about 0.0 per unit of risk. If you would invest 9,970 in Westinghouse Air Brake on September 14, 2024 and sell it today you would earn a total of 10,046 from holding Westinghouse Air Brake or generate 100.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.21% |
| Values | Daily Returns |
Westinghouse Air Brake vs. PCG 44 01 MAR 32
Performance |
| Timeline |
| Westinghouse Air Brake |
| PCG 44 01 |
Westinghouse Air and 694308KC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and 694308KC0
The main advantage of trading using opposite Westinghouse Air and 694308KC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, 694308KC0 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 694308KC0 will offset losses from the drop in 694308KC0's long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| 694308KC0 vs. Playa Hotels Resorts | 694308KC0 vs. Porvair plc | 694308KC0 vs. Cebu Air ADR | 694308KC0 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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