Correlation Between Westshore Terminals and Winpak
Can any of the company-specific risk be diversified away by investing in both Westshore Terminals and Winpak 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 Westshore Terminals and Winpak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westshore Terminals Investment and Winpak, you can compare the effects of market volatilities on Westshore Terminals and Winpak 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 Westshore Terminals with a short position of Winpak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westshore Terminals and Winpak.
Diversification Opportunities for Westshore Terminals and Winpak
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Westshore and Winpak is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Westshore Terminals Investment and Winpak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winpak and Westshore Terminals 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 Westshore Terminals Investment are associated (or correlated) with Winpak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winpak has no effect on the direction of Westshore Terminals i.e., Westshore Terminals and Winpak go up and down completely randomly.
Pair Corralation between Westshore Terminals and Winpak
Assuming the 90 days trading horizon Westshore Terminals is expected to generate 1.66 times less return on investment than Winpak. In addition to that, Westshore Terminals is 1.1 times more volatile than Winpak. It trades about 0.01 of its total potential returns per unit of risk. Winpak is currently generating about 0.02 per unit of volatility. If you would invest 4,180 in Winpak on October 14, 2024 and sell it today you would earn a total of 335.00 from holding Winpak or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westshore Terminals Investment vs. Winpak
Performance |
| Timeline |
| Westshore Terminals |
| Winpak |
Westshore Terminals and Winpak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westshore Terminals and Winpak
The main advantage of trading using opposite Westshore Terminals and Winpak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westshore Terminals position performs unexpectedly, Winpak 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 Winpak will offset losses from the drop in Winpak's long position.| Westshore Terminals vs. Mullen Group | Westshore Terminals vs. Ritchie Bros Auctioneers | Westshore Terminals vs. Winpak | Westshore Terminals vs. North West |
| Winpak vs. Atrium Mortgage Investment | Winpak vs. Westshore Terminals Investment | Winpak vs. CNJ Capital Investments | Winpak vs. Upstart Investments |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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