Correlation Between Wabash National and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Wabash National and CCSB Financial 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 Wabash National and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabash National and CCSB Financial Corp, you can compare the effects of market volatilities on Wabash National and CCSB Financial 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 Wabash National with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and CCSB Financial.
Diversification Opportunities for Wabash National and CCSB Financial
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wabash and CCSB is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp and Wabash National 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 Wabash National are associated (or correlated) with CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Wabash National i.e., Wabash National and CCSB Financial go up and down completely randomly.
Pair Corralation between Wabash National and CCSB Financial
Considering the 90-day investment horizon Wabash National is expected to generate 3.46 times more return on investment than CCSB Financial. However, Wabash National is 3.46 times more volatile than CCSB Financial Corp. It trades about 0.25 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.22 per unit of risk. If you would invest 1,690 in Wabash National on August 25, 2024 and sell it today you would earn a total of 241.00 from holding Wabash National or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wabash National vs. CCSB Financial Corp
Performance |
| Timeline |
| Wabash National |
| CCSB Financial Corp |
Wabash National and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabash National and CCSB Financial
The main advantage of trading using opposite Wabash National and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Wabash National vs. Lion Electric Corp | Wabash National vs. Xos Inc | Wabash National vs. Hydrofarm Holdings Group | Wabash National vs. Caterpillar |
| CCSB Financial vs. Asbury Automotive Group | CCSB Financial vs. Kite Realty Group | CCSB Financial vs. Grocery Outlet Holding | CCSB Financial vs. Corporacion America Airports |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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