Correlation Between 126307AY3 and BorgWarner
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By analyzing existing cross correlation between CSC Holdings 75 and BorgWarner, you can compare the effects of market volatilities on 126307AY3 and BorgWarner 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 126307AY3 with a short position of BorgWarner. Check out your portfolio center. Please also check ongoing floating volatility patterns of 126307AY3 and BorgWarner.
Diversification Opportunities for 126307AY3 and BorgWarner
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 126307AY3 and BorgWarner is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CSC Holdings 75 and BorgWarner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BorgWarner and 126307AY3 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 CSC Holdings 75 are associated (or correlated) with BorgWarner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BorgWarner has no effect on the direction of 126307AY3 i.e., 126307AY3 and BorgWarner go up and down completely randomly.
Pair Corralation between 126307AY3 and BorgWarner
Assuming the 90 days trading horizon 126307AY3 is expected to generate 1.65 times less return on investment than BorgWarner. In addition to that, 126307AY3 is 1.86 times more volatile than BorgWarner. It trades about 0.03 of its total potential returns per unit of risk. BorgWarner is currently generating about 0.08 per unit of volatility. If you would invest 3,219 in BorgWarner on September 6, 2024 and sell it today you would earn a total of 261.00 from holding BorgWarner or generate 8.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 82.54% |
Values | Daily Returns |
CSC Holdings 75 vs. BorgWarner
Performance |
Timeline |
CSC Holdings 75 |
BorgWarner |
126307AY3 and BorgWarner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 126307AY3 and BorgWarner
The main advantage of trading using opposite 126307AY3 and BorgWarner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 126307AY3 position performs unexpectedly, BorgWarner 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 BorgWarner will offset losses from the drop in BorgWarner's long position.126307AY3 vs. BorgWarner | 126307AY3 vs. Lucid Group | 126307AY3 vs. American Axle Manufacturing | 126307AY3 vs. Kite Realty Group |
BorgWarner vs. Lear Corporation | BorgWarner vs. Autoliv | BorgWarner vs. Fox Factory Holding | BorgWarner vs. LKQ Corporation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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