Correlation Between Westinghouse Air and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and Fuji 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 Fuji 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 Fuji Media Holdings, you can compare the effects of market volatilities on Westinghouse Air and Fuji 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and Fuji Media.
Diversification Opportunities for Westinghouse Air and Fuji Media
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Westinghouse and Fuji is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and Fuji Media go up and down completely randomly.
Pair Corralation between Westinghouse Air and Fuji Media
Assuming the 90 days horizon Westinghouse Air Brake is expected to generate 0.52 times more return on investment than Fuji Media. However, Westinghouse Air Brake is 1.94 times less risky than Fuji Media. It trades about -0.18 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about -0.25 per unit of risk. If you would invest 19,175 in Westinghouse Air Brake on October 11, 2024 and sell it today you would lose (775.00) from holding Westinghouse Air Brake or give up 4.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westinghouse Air Brake vs. Fuji Media Holdings
Performance |
| Timeline |
| Westinghouse Air Brake |
| Fuji Media Holdings |
Westinghouse Air and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and Fuji Media
The main advantage of trading using opposite Westinghouse Air and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, Fuji 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Westinghouse Air vs. Singapore Telecommunications Limited | Westinghouse Air vs. Tower Semiconductor | Westinghouse Air vs. Rocket Internet SE | Westinghouse Air vs. Taiwan Semiconductor Manufacturing |
| Fuji Media vs. Commonwealth Bank of | Fuji Media vs. Virtu Financial | Fuji Media vs. Corsair Gaming | Fuji 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |