Correlation Between Western Union and 86787GAJ1
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By analyzing existing cross correlation between Western Union Co and SUNTRUST BK ATLANTA, you can compare the effects of market volatilities on Western Union and 86787GAJ1 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 86787GAJ1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and 86787GAJ1.
Diversification Opportunities for Western Union and 86787GAJ1
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and 86787GAJ1 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and SUNTRUST BK ATLANTA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNTRUST BK ATLANTA 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 86787GAJ1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNTRUST BK ATLANTA has no effect on the direction of Western Union i.e., Western Union and 86787GAJ1 go up and down completely randomly.
Pair Corralation between Western Union and 86787GAJ1
Allowing for the 90-day total investment horizon Western Union Co is expected to generate 1.97 times more return on investment than 86787GAJ1. However, Western Union is 1.97 times more volatile than SUNTRUST BK ATLANTA. It trades about 0.14 of its potential returns per unit of risk. SUNTRUST BK ATLANTA is currently generating about -0.17 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 36.00 from holding Western Union Co or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Western Union Co vs. SUNTRUST BK ATLANTA
Performance |
| Timeline |
| Western Union |
| SUNTRUST BK ATLANTA |
Western Union and 86787GAJ1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Union and 86787GAJ1
The main advantage of trading using opposite Western Union and 86787GAJ1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union position performs unexpectedly, 86787GAJ1 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 86787GAJ1 will offset losses from the drop in 86787GAJ1's long position.| Western Union vs. Navient Corp | Western Union vs. Green Dot | Western Union vs. Orix Corp Ads | Western Union vs. FirstCash |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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