Correlation Between Eventide Exponential and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Eventide Exponential and Old Westbury 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 Eventide Exponential and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eventide Exponential Technologies and Old Westbury Short Term, you can compare the effects of market volatilities on Eventide Exponential and Old Westbury 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 Eventide Exponential with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Exponential and Old Westbury.
Diversification Opportunities for Eventide Exponential and Old Westbury
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eventide and Old is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Exponential Technolog and Old Westbury Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Short and Eventide Exponential 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 Eventide Exponential Technologies are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Short has no effect on the direction of Eventide Exponential i.e., Eventide Exponential and Old Westbury go up and down completely randomly.
Pair Corralation between Eventide Exponential and Old Westbury
Assuming the 90 days horizon Eventide Exponential Technologies is expected to generate 14.29 times more return on investment than Old Westbury. However, Eventide Exponential is 14.29 times more volatile than Old Westbury Short Term. It trades about 0.04 of its potential returns per unit of risk. Old Westbury Short Term is currently generating about 0.18 per unit of risk. If you would invest 1,036 in Eventide Exponential Technologies on September 4, 2024 and sell it today you would earn a total of 272.00 from holding Eventide Exponential Technologies or generate 26.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.66% |
| Values | Daily Returns |
Eventide Exponential Technolog vs. Old Westbury Short Term
Performance |
| Timeline |
| Eventide Exponential |
| Old Westbury Short |
Eventide Exponential and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Exponential and Old Westbury
The main advantage of trading using opposite Eventide Exponential and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Exponential position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Eventide Exponential vs. Multisector Bond Sma | Eventide Exponential vs. Calamos Dynamic Convertible | Eventide Exponential vs. Blrc Sgy Mnp | Eventide Exponential vs. Versatile Bond Portfolio |
| Old Westbury vs. Old Westbury All | Old Westbury vs. Old Westbury Credit | Old Westbury vs. Old Westbury Large | Old Westbury vs. Old Westbury Municipal |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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