Correlation Between Westinghouse Air and ATT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Westinghouse Air Brake and ATT Inc, you can compare the effects of market volatilities on Westinghouse Air and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and ATT.
Diversification Opportunities for Westinghouse Air and ATT
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Westinghouse and ATT is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and ATT go up and down completely randomly.
Pair Corralation between Westinghouse Air and ATT
Assuming the 90 days horizon Westinghouse Air Brake is expected to generate 0.79 times more return on investment than ATT. However, Westinghouse Air Brake is 1.26 times less risky than ATT. It trades about 0.4 of its potential returns per unit of risk. ATT Inc is currently generating about 0.05 per unit of risk. If you would invest 18,230 in Westinghouse Air Brake on October 20, 2024 and sell it today you would earn a total of 1,235 from holding Westinghouse Air Brake or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westinghouse Air Brake vs. ATT Inc
Performance |
| Timeline |
| Westinghouse Air Brake |
| ATT Inc |
Westinghouse Air and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and ATT
The main advantage of trading using opposite Westinghouse Air and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| Westinghouse Air vs. ALERION CLEANPOWER | Westinghouse Air vs. Performance Food Group | Westinghouse Air vs. LIFEWAY FOODS | Westinghouse Air vs. Clean Energy Fuels |
| ATT vs. Alfa Financial Software | ATT vs. CVW CLEANTECH INC | ATT vs. ALERION CLEANPOWER | ATT vs. SENECA FOODS A |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |