Correlation Between Western Acquisition and BOARDWALK
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By analyzing existing cross correlation between Western Acquisition Ventures and BOARDWALK PIPELINES LP, you can compare the effects of market volatilities on Western Acquisition and BOARDWALK 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 Western Acquisition with a short position of BOARDWALK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and BOARDWALK.
Diversification Opportunities for Western Acquisition and BOARDWALK
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and BOARDWALK is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and BOARDWALK PIPELINES LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOARDWALK PIPELINES and Western Acquisition 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 Western Acquisition Ventures are associated (or correlated) with BOARDWALK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOARDWALK PIPELINES has no effect on the direction of Western Acquisition i.e., Western Acquisition and BOARDWALK go up and down completely randomly.
Pair Corralation between Western Acquisition and BOARDWALK
Given the investment horizon of 90 days Western Acquisition Ventures is expected to under-perform the BOARDWALK. In addition to that, Western Acquisition is 1.6 times more volatile than BOARDWALK PIPELINES LP. It trades about -0.06 of its total potential returns per unit of risk. BOARDWALK PIPELINES LP is currently generating about 0.12 per unit of volatility. If you would invest 10,193 in BOARDWALK PIPELINES LP on September 12, 2024 and sell it today you would earn a total of 201.00 from holding BOARDWALK PIPELINES LP or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Acquisition Ventures vs. BOARDWALK PIPELINES LP
Performance |
| Timeline |
| Western Acquisition |
| BOARDWALK PIPELINES |
Western Acquisition and BOARDWALK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and BOARDWALK
The main advantage of trading using opposite Western Acquisition and BOARDWALK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition position performs unexpectedly, BOARDWALK 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 BOARDWALK will offset losses from the drop in BOARDWALK's long position.| Western Acquisition vs. HUMANA INC | Western Acquisition vs. Barloworld Ltd ADR | Western Acquisition vs. Morningstar Unconstrained Allocation | Western Acquisition vs. Thrivent High Yield |
| BOARDWALK vs. Vita Coco | BOARDWALK vs. RCS MediaGroup SpA | BOARDWALK vs. Dave Busters Entertainment | BOARDWALK vs. Solstad Offshore ASA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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