Correlation Between Multimanager Lifestyle and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle 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 Multimanager Lifestyle and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimanager Lifestyle Aggressive and Old Westbury Municipal, you can compare the effects of market volatilities on Multimanager Lifestyle 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 Multimanager Lifestyle with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Old Westbury.
Diversification Opportunities for Multimanager Lifestyle and Old Westbury
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Multimanager and Old is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Aggress 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 Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive 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 Multimanager Lifestyle i.e., Multimanager Lifestyle and Old Westbury go up and down completely randomly.
Pair Corralation between Multimanager Lifestyle and Old Westbury
Assuming the 90 days horizon Multimanager Lifestyle Aggressive is expected to generate 5.02 times more return on investment than Old Westbury. However, Multimanager Lifestyle is 5.02 times more volatile than Old Westbury Municipal. It trades about 0.16 of its potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.58 per unit of risk. If you would invest 1,537 in Multimanager Lifestyle Aggressive on September 13, 2024 and sell it today you would earn a total of 24.00 from holding Multimanager Lifestyle Aggressive or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multimanager Lifestyle Aggress vs. Old Westbury Municipal
Performance |
| Timeline |
| Multimanager Lifestyle |
| Old Westbury Municipal |
Multimanager Lifestyle and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimanager Lifestyle and Old Westbury
The main advantage of trading using opposite Multimanager Lifestyle and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle 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.| Multimanager Lifestyle vs. Old Westbury Municipal | Multimanager Lifestyle vs. California High Yield Municipal | Multimanager Lifestyle vs. T Rowe Price | Multimanager Lifestyle vs. Oklahoma Municipal Fund |
| Old Westbury vs. Boston Partners Small | Old Westbury vs. Royce Opportunity Fund | Old Westbury vs. Queens Road Small | Old Westbury vs. Lsv Small Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |