Correlation Between Westinghouse Air and Providence Gold
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and Providence Gold 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 Providence Gold 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 Providence Gold Mines, you can compare the effects of market volatilities on Westinghouse Air and Providence Gold 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 Providence Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and Providence Gold.
Diversification Opportunities for Westinghouse Air and Providence Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westinghouse and Providence is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and Providence Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Providence Gold Mines 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 Providence Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Providence Gold Mines has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and Providence Gold go up and down completely randomly.
Pair Corralation between Westinghouse Air and Providence Gold
If you would invest 16,527 in Westinghouse Air Brake on September 5, 2024 and sell it today you would earn a total of 2,603 from holding Westinghouse Air Brake or generate 15.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Westinghouse Air Brake vs. Providence Gold Mines
Performance |
| Timeline |
| Westinghouse Air Brake |
| Providence Gold Mines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Westinghouse Air and Providence Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and Providence Gold
The main advantage of trading using opposite Westinghouse Air and Providence Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, Providence Gold 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 Providence Gold will offset losses from the drop in Providence Gold's long position.| Westinghouse Air vs. Superior Plus Corp | Westinghouse Air vs. NMI Holdings | Westinghouse Air vs. Origin Agritech | Westinghouse Air vs. SIVERS SEMICONDUCTORS AB |
| Providence Gold vs. CI GAMES SA | Providence Gold vs. FUTURE GAMING GRP | Providence Gold vs. GameStop Corp | Providence Gold vs. Hochschild Mining plc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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