Correlation Between Westinghouse Air and Verisk Analytics
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and Verisk Analytics 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 Westinghouse Air and Verisk Analytics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westinghouse Air Brake and Verisk Analytics, you can compare the effects of market volatilities on Westinghouse Air and Verisk Analytics 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 Verisk Analytics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and Verisk Analytics.
Diversification Opportunities for Westinghouse Air and Verisk Analytics
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westinghouse and Verisk is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and Verisk Analytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verisk Analytics 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 Verisk Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verisk Analytics has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and Verisk Analytics go up and down completely randomly.
Pair Corralation between Westinghouse Air and Verisk Analytics
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 1.15 times more return on investment than Verisk Analytics. However, Westinghouse Air is 1.15 times more volatile than Verisk Analytics. It trades about 0.02 of its potential returns per unit of risk. Verisk Analytics is currently generating about -0.07 per unit of risk. If you would invest 20,733 in Westinghouse Air Brake on September 8, 2025 and sell it today you would earn a total of 762.00 from holding Westinghouse Air Brake or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westinghouse Air Brake vs. Verisk Analytics
Performance |
| Timeline |
| Westinghouse Air Brake |
| Verisk Analytics |
Westinghouse Air and Verisk Analytics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and Verisk Analytics
The main advantage of trading using opposite Westinghouse Air and Verisk Analytics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, Verisk Analytics 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 Verisk Analytics will offset losses from the drop in Verisk Analytics' long position.| Westinghouse Air vs. GreenPower Motor | Westinghouse Air vs. Tianrun Crankshaft Co | Westinghouse Air vs. Shandong Mining Machinery | Westinghouse Air vs. Shandong Hongyu Agricultural |
| Verisk Analytics vs. ARIA Wireless Systems | Verisk Analytics vs. Fevertree Drinks Plc | Verisk Analytics vs. Technology Telecommunication Acquisition | Verisk Analytics vs. Space Communication |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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