Correlation Between Winpak and Westshore Terminals
Can any of the company-specific risk be diversified away by investing in both Winpak and Westshore Terminals 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 Winpak and Westshore Terminals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winpak and Westshore Terminals Investment, you can compare the effects of market volatilities on Winpak and Westshore Terminals 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 Winpak with a short position of Westshore Terminals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winpak and Westshore Terminals.
Diversification Opportunities for Winpak and Westshore Terminals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Winpak and Westshore is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Winpak and Westshore Terminals Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westshore Terminals and Winpak 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 Winpak are associated (or correlated) with Westshore Terminals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westshore Terminals has no effect on the direction of Winpak i.e., Winpak and Westshore Terminals go up and down completely randomly.
Pair Corralation between Winpak and Westshore Terminals
Assuming the 90 days trading horizon Winpak is expected to under-perform the Westshore Terminals. In addition to that, Winpak is 1.76 times more volatile than Westshore Terminals Investment. It trades about -0.09 of its total potential returns per unit of risk. Westshore Terminals Investment is currently generating about 0.18 per unit of volatility. If you would invest 2,324 in Westshore Terminals Investment on August 31, 2024 and sell it today you would earn a total of 80.00 from holding Westshore Terminals Investment or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winpak vs. Westshore Terminals Investment
Performance |
| Timeline |
| Winpak |
| Westshore Terminals |
Winpak and Westshore Terminals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winpak and Westshore Terminals
The main advantage of trading using opposite Winpak and Westshore Terminals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winpak position performs unexpectedly, Westshore Terminals 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 Westshore Terminals will offset losses from the drop in Westshore Terminals' long position.| Winpak vs. Olympia Financial Group | Winpak vs. Royal Bank of | Winpak vs. Western Investment | Winpak vs. Economic Investment Trust |
| Westshore Terminals vs. Baylin Technologies | Westshore Terminals vs. Supremex | Westshore Terminals vs. iShares Canadian HYBrid | Westshore Terminals vs. Brompton European Dividend |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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