Correlation Between Western Union and APx Acquisition
Can any of the company-specific risk be diversified away by investing in both Western Union and APx Acquisition 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 Western Union and APx Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Union Co and APx Acquisition I, you can compare the effects of market volatilities on Western Union and APx Acquisition 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 Western Union with a short position of APx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and APx Acquisition.
Diversification Opportunities for Western Union and APx Acquisition
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and APx is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and APx Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APx Acquisition I and Western Union 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 Western Union Co are associated (or correlated) with APx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APx Acquisition I has no effect on the direction of Western Union i.e., Western Union and APx Acquisition go up and down completely randomly.
Pair Corralation between Western Union and APx Acquisition
Allowing for the 90-day total investment horizon Western Union Co is expected to generate 0.95 times more return on investment than APx Acquisition. However, Western Union Co is 1.05 times less risky than APx Acquisition. It trades about 0.11 of its potential returns per unit of risk. APx Acquisition I is currently generating about 0.01 per unit of risk. If you would invest 1,061 in Western Union Co on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Western Union Co or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Union Co vs. APx Acquisition I
Performance |
| Timeline |
| Western Union |
| APx Acquisition I |
Western Union and APx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Union and APx Acquisition
The main advantage of trading using opposite Western Union and APx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union position performs unexpectedly, APx Acquisition 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 APx Acquisition will offset losses from the drop in APx Acquisition's long position.| Western Union vs. Navient Corp | Western Union vs. Green Dot | Western Union vs. Orix Corp Ads | Western Union vs. FirstCash |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |