Correlation Between Westinghouse Air and TOWNSQUARE MEDIA
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and TOWNSQUARE MEDIA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Westinghouse Air and TOWNSQUARE MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westinghouse Air Brake and TOWNSQUARE MEDIA INC, you can compare the effects of market volatilities on Westinghouse Air and TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and TOWNSQUARE MEDIA.
Diversification Opportunities for Westinghouse Air and TOWNSQUARE MEDIA
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westinghouse and TOWNSQUARE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and TOWNSQUARE MEDIA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOWNSQUARE MEDIA INC 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 TOWNSQUARE MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOWNSQUARE MEDIA INC has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and TOWNSQUARE MEDIA go up and down completely randomly.
Pair Corralation between Westinghouse Air and TOWNSQUARE MEDIA
Assuming the 90 days horizon Westinghouse Air Brake is expected to generate 0.65 times more return on investment than TOWNSQUARE MEDIA. However, Westinghouse Air Brake is 1.55 times less risky than TOWNSQUARE MEDIA. It trades about 0.12 of its potential returns per unit of risk. TOWNSQUARE MEDIA INC is currently generating about 0.01 per unit of risk. If you would invest 18,410 in Westinghouse Air Brake on September 20, 2024 and sell it today you would earn a total of 550.00 from holding Westinghouse Air Brake or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westinghouse Air Brake vs. TOWNSQUARE MEDIA INC
Performance |
| Timeline |
| Westinghouse Air Brake |
| TOWNSQUARE MEDIA INC |
Westinghouse Air and TOWNSQUARE MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and TOWNSQUARE MEDIA
The main advantage of trading using opposite Westinghouse Air and TOWNSQUARE MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA will offset losses from the drop in TOWNSQUARE MEDIA's long position.| Westinghouse Air vs. TRAVEL LEISURE DL 01 | Westinghouse Air vs. VIAPLAY GROUP AB | Westinghouse Air vs. Pembina Pipeline Corp | Westinghouse Air vs. Playtech plc |
| TOWNSQUARE MEDIA vs. AUSTEVOLL SEAFOOD | TOWNSQUARE MEDIA vs. Lery Seafood Group | TOWNSQUARE MEDIA vs. Ryanair Holdings plc | TOWNSQUARE MEDIA 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |