Correlation Between Western Acquisition and TRANSCANADA
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By analyzing existing cross correlation between Western Acquisition Ventures and TRANSCANADA PIPELINES LTD, you can compare the effects of market volatilities on Western Acquisition and TRANSCANADA 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 TRANSCANADA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and TRANSCANADA.
Diversification Opportunities for Western Acquisition and TRANSCANADA
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and TRANSCANADA is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and TRANSCANADA PIPELINES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCANADA PIPELINES LTD 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 TRANSCANADA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCANADA PIPELINES LTD has no effect on the direction of Western Acquisition i.e., Western Acquisition and TRANSCANADA go up and down completely randomly.
Pair Corralation between Western Acquisition and TRANSCANADA
Given the investment horizon of 90 days Western Acquisition Ventures is expected to generate 2.31 times more return on investment than TRANSCANADA. However, Western Acquisition is 2.31 times more volatile than TRANSCANADA PIPELINES LTD. It trades about 0.05 of its potential returns per unit of risk. TRANSCANADA PIPELINES LTD is currently generating about -0.22 per unit of risk. If you would invest 1,065 in Western Acquisition Ventures on August 26, 2024 and sell it today you would earn a total of 40.00 from holding Western Acquisition Ventures or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Acquisition Ventures vs. TRANSCANADA PIPELINES LTD
Performance |
| Timeline |
| Western Acquisition |
| TRANSCANADA PIPELINES LTD |
Western Acquisition and TRANSCANADA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and TRANSCANADA
The main advantage of trading using opposite Western Acquisition and TRANSCANADA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition position performs unexpectedly, TRANSCANADA 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 TRANSCANADA will offset losses from the drop in TRANSCANADA's long position.| Western Acquisition vs. PowerUp Acquisition Corp | Western Acquisition vs. Aurora Innovation | Western Acquisition vs. HUMANA INC | Western Acquisition vs. Aquagold International |
| TRANSCANADA vs. Kite Realty Group | TRANSCANADA vs. Nyxoah | TRANSCANADA vs. Western Acquisition Ventures | TRANSCANADA vs. Inflection Point Acquisition |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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