Correlation Between James Balanced: and Westwood Largecap
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Westwood Largecap 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 James Balanced: and Westwood Largecap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Westwood Largecap Value, you can compare the effects of market volatilities on James Balanced: and Westwood Largecap 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 James Balanced: with a short position of Westwood Largecap. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Westwood Largecap.
Diversification Opportunities for James Balanced: and Westwood Largecap
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between James and Westwood is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Westwood Largecap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwood Largecap Value and James Balanced: 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 James Balanced Golden are associated (or correlated) with Westwood Largecap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwood Largecap Value has no effect on the direction of James Balanced: i.e., James Balanced: and Westwood Largecap go up and down completely randomly.
Pair Corralation between James Balanced: and Westwood Largecap
Assuming the 90 days horizon James Balanced: is expected to generate 2.25 times less return on investment than Westwood Largecap. But when comparing it to its historical volatility, James Balanced Golden is 1.33 times less risky than Westwood Largecap. It trades about 0.11 of its potential returns per unit of risk. Westwood Largecap Value is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,356 in Westwood Largecap Value on October 23, 2024 and sell it today you would earn a total of 29.00 from holding Westwood Largecap Value or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Westwood Largecap Value
Performance |
| Timeline |
| James Balanced Golden |
| Westwood Largecap Value |
James Balanced: and Westwood Largecap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Westwood Largecap
The main advantage of trading using opposite James Balanced: and Westwood Largecap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Westwood Largecap 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 Westwood Largecap will offset losses from the drop in Westwood Largecap's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Westwood Largecap vs. Guidepath Managed Futures | Westwood Largecap vs. Cref Inflation Linked Bond | Westwood Largecap vs. Asg Managed Futures | Westwood Largecap vs. Altegris Futures Evolution |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |