Correlation Between Wabash National and Spectaire Holdings
Can any of the company-specific risk be diversified away by investing in both Wabash National and Spectaire Holdings 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 Spectaire Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabash National and Spectaire Holdings, you can compare the effects of market volatilities on Wabash National and Spectaire Holdings 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 Spectaire Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and Spectaire Holdings.
Diversification Opportunities for Wabash National and Spectaire Holdings
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wabash and Spectaire is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National and Spectaire Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectaire Holdings 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 Spectaire Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectaire Holdings has no effect on the direction of Wabash National i.e., Wabash National and Spectaire Holdings go up and down completely randomly.
Pair Corralation between Wabash National and Spectaire Holdings
If you would invest 1,852 in Wabash National on September 9, 2024 and sell it today you would earn a total of 79.00 from holding Wabash National or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.54% |
| Values | Daily Returns |
Wabash National vs. Spectaire Holdings
Performance |
| Timeline |
| Wabash National |
| Spectaire Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wabash National and Spectaire Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabash National and Spectaire Holdings
The main advantage of trading using opposite Wabash National and Spectaire Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National position performs unexpectedly, Spectaire Holdings 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 Spectaire Holdings will offset losses from the drop in Spectaire Holdings' long position.| Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
| Spectaire Holdings vs. Eastman Chemical | Spectaire Holdings vs. Micron Technology | Spectaire Holdings vs. Minerals Technologies | Spectaire Holdings vs. The Coca Cola |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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