Correlation Between Willamette Valley and CUMMINS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Willamette Valley Vineyards and CUMMINS INC, you can compare the effects of market volatilities on Willamette Valley and CUMMINS 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 Willamette Valley with a short position of CUMMINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willamette Valley and CUMMINS.
Diversification Opportunities for Willamette Valley and CUMMINS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Willamette and CUMMINS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Willamette Valley Vineyards and CUMMINS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUMMINS INC and Willamette Valley 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 Willamette Valley Vineyards are associated (or correlated) with CUMMINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUMMINS INC has no effect on the direction of Willamette Valley i.e., Willamette Valley and CUMMINS go up and down completely randomly.
Pair Corralation between Willamette Valley and CUMMINS
Given the investment horizon of 90 days Willamette Valley is expected to generate 66.03 times less return on investment than CUMMINS. But when comparing it to its historical volatility, Willamette Valley Vineyards is 19.26 times less risky than CUMMINS. It trades about 0.01 of its potential returns per unit of risk. CUMMINS INC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,271 in CUMMINS INC on January 24, 2025 and sell it today you would lose (51.00) from holding CUMMINS INC or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.36% |
| Values | Daily Returns |
Willamette Valley Vineyards vs. CUMMINS INC
Performance |
| Timeline |
| Willamette Valley |
| CUMMINS INC |
Willamette Valley and CUMMINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willamette Valley and CUMMINS
The main advantage of trading using opposite Willamette Valley and CUMMINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willamette Valley position performs unexpectedly, CUMMINS 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 CUMMINS will offset losses from the drop in CUMMINS's long position.| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
| CUMMINS vs. Ecovyst | CUMMINS vs. Stepan Company | CUMMINS vs. Grupo Simec SAB | CUMMINS vs. ArcelorMittal SA ADR |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |