Correlation Between ChampionX and Wabash National
Can any of the company-specific risk be diversified away by investing in both ChampionX and Wabash National 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 ChampionX and Wabash National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Wabash National, you can compare the effects of market volatilities on ChampionX and Wabash National 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 ChampionX with a short position of Wabash National. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Wabash National.
Diversification Opportunities for ChampionX and Wabash National
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between ChampionX and Wabash is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Wabash National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabash National and ChampionX 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 ChampionX are associated (or correlated) with Wabash National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabash National has no effect on the direction of ChampionX i.e., ChampionX and Wabash National go up and down completely randomly.
Pair Corralation between ChampionX and Wabash National
Considering the 90-day investment horizon ChampionX is expected to generate 0.76 times more return on investment than Wabash National. However, ChampionX is 1.31 times less risky than Wabash National. It trades about -0.01 of its potential returns per unit of risk. Wabash National is currently generating about -0.31 per unit of risk. If you would invest 3,066 in ChampionX on December 2, 2024 and sell it today you would lose (86.00) from holding ChampionX or give up 2.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ChampionX vs. Wabash National
Performance |
Timeline |
ChampionX |
Wabash National |
ChampionX and Wabash National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ChampionX and Wabash National
The main advantage of trading using opposite ChampionX and Wabash National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Wabash National 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 Wabash National will offset losses from the drop in Wabash National's long position.ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |