Correlation Between Westinghouse Air and 50247VAC3
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By analyzing existing cross correlation between Westinghouse Air Brake and LYB INTL FIN, you can compare the effects of market volatilities on Westinghouse Air and 50247VAC3 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 Westinghouse Air with a short position of 50247VAC3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and 50247VAC3.
Diversification Opportunities for Westinghouse Air and 50247VAC3
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Westinghouse and 50247VAC3 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and LYB INTL FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB INTL FIN and Westinghouse Air 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 Westinghouse Air Brake are associated (or correlated) with 50247VAC3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB INTL FIN has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and 50247VAC3 go up and down completely randomly.
Pair Corralation between Westinghouse Air and 50247VAC3
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 1.67 times more return on investment than 50247VAC3. However, Westinghouse Air is 1.67 times more volatile than LYB INTL FIN. It trades about -0.02 of its potential returns per unit of risk. LYB INTL FIN is currently generating about -0.08 per unit of risk. If you would invest 19,361 in Westinghouse Air Brake on December 26, 2024 and sell it today you would lose (592.00) from holding Westinghouse Air Brake or give up 3.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 88.52% |
Values | Daily Returns |
Westinghouse Air Brake vs. LYB INTL FIN
Performance |
Timeline |
Westinghouse Air Brake |
LYB INTL FIN |
Westinghouse Air and 50247VAC3 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Westinghouse Air and 50247VAC3
The main advantage of trading using opposite Westinghouse Air and 50247VAC3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, 50247VAC3 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 50247VAC3 will offset losses from the drop in 50247VAC3's long position.Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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