Correlation Between Westinghouse Air and ALTAIR RES
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and ALTAIR RES 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 ALTAIR RES 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 ALTAIR RES INC, you can compare the effects of market volatilities on Westinghouse Air and ALTAIR RES 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 ALTAIR RES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and ALTAIR RES.
Diversification Opportunities for Westinghouse Air and ALTAIR RES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westinghouse and ALTAIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and ALTAIR RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTAIR RES 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 ALTAIR RES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTAIR RES INC has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and ALTAIR RES go up and down completely randomly.
Pair Corralation between Westinghouse Air and ALTAIR RES
If you would invest 14,734 in Westinghouse Air Brake on August 28, 2024 and sell it today you would earn a total of 4,301 from holding Westinghouse Air Brake or generate 29.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Westinghouse Air Brake vs. ALTAIR RES INC
Performance |
| Timeline |
| Westinghouse Air Brake |
| ALTAIR RES INC |
Westinghouse Air and ALTAIR RES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and ALTAIR RES
The main advantage of trading using opposite Westinghouse Air and ALTAIR RES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, ALTAIR RES 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 ALTAIR RES will offset losses from the drop in ALTAIR RES's long position.| Westinghouse Air vs. Datang International Power | Westinghouse Air vs. Datadog | Westinghouse Air vs. LION ONE METALS | Westinghouse Air vs. KENNAMETAL INC |
| ALTAIR RES vs. Superior Plus Corp | ALTAIR RES vs. NMI Holdings | ALTAIR RES vs. Origin Agritech | ALTAIR RES vs. SIVERS SEMICONDUCTORS AB |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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