Correlation Between Wabash National and 126408HL0
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By analyzing existing cross correlation between Wabash National and CSX P 465, you can compare the effects of market volatilities on Wabash National and 126408HL0 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 126408HL0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and 126408HL0.
Diversification Opportunities for Wabash National and 126408HL0
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wabash and 126408HL0 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National and CSX P 465 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX P 465 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 126408HL0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX P 465 has no effect on the direction of Wabash National i.e., Wabash National and 126408HL0 go up and down completely randomly.
Pair Corralation between Wabash National and 126408HL0
Considering the 90-day investment horizon Wabash National is expected to under-perform the 126408HL0. In addition to that, Wabash National is 1.71 times more volatile than CSX P 465. It trades about -0.03 of its total potential returns per unit of risk. CSX P 465 is currently generating about -0.02 per unit of volatility. If you would invest 8,848 in CSX P 465 on September 12, 2024 and sell it today you would lose (589.00) from holding CSX P 465 or give up 6.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.16% |
| Values | Daily Returns |
Wabash National vs. CSX P 465
Performance |
| Timeline |
| Wabash National |
| CSX P 465 |
Wabash National and 126408HL0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabash National and 126408HL0
The main advantage of trading using opposite Wabash National and 126408HL0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National position performs unexpectedly, 126408HL0 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 126408HL0 will offset losses from the drop in 126408HL0's long position.| Wabash National vs. Manitowoc | Wabash National vs. Alamo Group | Wabash National vs. AGCO Corporation | Wabash National vs. Deere Company |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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