Correlation Between MINCO SILVER and Westinghouse Air
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER and Westinghouse Air 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 MINCO SILVER and Westinghouse Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and Westinghouse Air Brake, you can compare the effects of market volatilities on MINCO SILVER and Westinghouse Air 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 MINCO SILVER with a short position of Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and Westinghouse Air.
Diversification Opportunities for MINCO SILVER and Westinghouse Air
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MINCO and Westinghouse is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and Westinghouse Air Brake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westinghouse Air Brake and MINCO SILVER 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 MINCO SILVER are associated (or correlated) with Westinghouse Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westinghouse Air Brake has no effect on the direction of MINCO SILVER i.e., MINCO SILVER and Westinghouse Air go up and down completely randomly.
Pair Corralation between MINCO SILVER and Westinghouse Air
Assuming the 90 days trading horizon MINCO SILVER is expected to under-perform the Westinghouse Air. In addition to that, MINCO SILVER is 2.73 times more volatile than Westinghouse Air Brake. It trades about 0.0 of its total potential returns per unit of risk. Westinghouse Air Brake is currently generating about 0.12 per unit of volatility. If you would invest 15,038 in Westinghouse Air Brake on September 3, 2024 and sell it today you would earn a total of 4,037 from holding Westinghouse Air Brake or generate 26.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. Westinghouse Air Brake
Performance |
| Timeline |
| MINCO SILVER |
| Westinghouse Air Brake |
MINCO SILVER and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and Westinghouse Air
The main advantage of trading using opposite MINCO SILVER and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER position performs unexpectedly, Westinghouse Air 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 Westinghouse Air will offset losses from the drop in Westinghouse Air's long position.| MINCO SILVER vs. TOTAL GABON | MINCO SILVER vs. Walgreens Boots Alliance | MINCO SILVER vs. Peak Resources Limited |
| Westinghouse Air vs. Superior Plus Corp | Westinghouse Air vs. NMI Holdings | Westinghouse Air vs. Origin Agritech | Westinghouse Air vs. SIVERS SEMICONDUCTORS AB |
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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