Correlation Between Gmo Asset and Wesmark Tactical
Can any of the company-specific risk be diversified away by investing in both Gmo Asset and Wesmark Tactical 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 Gmo Asset and Wesmark Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Asset Allocation and Wesmark Tactical Opportunity, you can compare the effects of market volatilities on Gmo Asset and Wesmark Tactical 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 Gmo Asset with a short position of Wesmark Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Asset and Wesmark Tactical.
Diversification Opportunities for Gmo Asset and Wesmark Tactical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gmo and Wesmark is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Asset Allocation and Wesmark Tactical Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesmark Tactical Opp and Gmo Asset 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 Gmo Asset Allocation are associated (or correlated) with Wesmark Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesmark Tactical Opp has no effect on the direction of Gmo Asset i.e., Gmo Asset and Wesmark Tactical go up and down completely randomly.
Pair Corralation between Gmo Asset and Wesmark Tactical
Assuming the 90 days horizon Gmo Asset Allocation is expected to under-perform the Wesmark Tactical. In addition to that, Gmo Asset is 2.26 times more volatile than Wesmark Tactical Opportunity. It trades about -0.12 of its total potential returns per unit of risk. Wesmark Tactical Opportunity is currently generating about 0.15 per unit of volatility. If you would invest 1,185 in Wesmark Tactical Opportunity on August 27, 2024 and sell it today you would earn a total of 16.00 from holding Wesmark Tactical Opportunity or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Asset Allocation vs. Wesmark Tactical Opportunity
Performance |
| Timeline |
| Gmo Asset Allocation |
| Wesmark Tactical Opp |
Gmo Asset and Wesmark Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Asset and Wesmark Tactical
The main advantage of trading using opposite Gmo Asset and Wesmark Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Asset position performs unexpectedly, Wesmark Tactical 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 Wesmark Tactical will offset losses from the drop in Wesmark Tactical's long position.| Gmo Asset vs. Gmo E Plus | Gmo Asset vs. Gmo Trust | Gmo Asset vs. Gmo Treasury Fund | Gmo Asset vs. Gmo Trust |
| Wesmark Tactical vs. Wesmark Growth Fund | Wesmark Tactical vs. Wesmark Government Bond | Wesmark Tactical vs. Wesmark Small Pany |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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