Correlation Between Huber Capital and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Huber Capital 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 Huber Capital and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and Old Westbury Municipal, you can compare the effects of market volatilities on Huber Capital 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 Huber Capital with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Old Westbury.
Diversification Opportunities for Huber Capital and Old Westbury
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huber and Old is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Municipal and Huber Capital 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 Huber Capital Diversified 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 Municipal has no effect on the direction of Huber Capital i.e., Huber Capital and Old Westbury go up and down completely randomly.
Pair Corralation between Huber Capital and Old Westbury
Assuming the 90 days horizon Huber Capital Diversified is expected to generate 5.14 times more return on investment than Old Westbury. However, Huber Capital is 5.14 times more volatile than Old Westbury Municipal. It trades about 0.08 of its potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.05 per unit of risk. If you would invest 1,807 in Huber Capital Diversified on August 28, 2024 and sell it today you would earn a total of 667.00 from holding Huber Capital Diversified or generate 36.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Diversified vs. Old Westbury Municipal
Performance |
| Timeline |
| Huber Capital Diversified |
| Old Westbury Municipal |
Huber Capital and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Old Westbury
The main advantage of trading using opposite Huber Capital and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital 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.| Huber Capital vs. Huber Capital Small | Huber Capital vs. Huber Capital Small | Huber Capital vs. Amg Gwk Small |
| Old Westbury vs. Nuveen Minnesota Municipal | Old Westbury vs. Morningstar Defensive Bond | Old Westbury vs. Intermediate Term Bond Fund | Old Westbury vs. Ishares Municipal Bond |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |