Correlation Between NYSE Composite and Osterweis Fund
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Osterweis Fund 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 NYSE Composite and Osterweis Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Osterweis Fund Investor, you can compare the effects of market volatilities on NYSE Composite and Osterweis Fund 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 NYSE Composite with a short position of Osterweis Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Osterweis Fund.
Diversification Opportunities for NYSE Composite and Osterweis Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Osterweis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Osterweis Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Fund Investor and NYSE Composite 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 NYSE Composite are associated (or correlated) with Osterweis Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Fund Investor has no effect on the direction of NYSE Composite i.e., NYSE Composite and Osterweis Fund go up and down completely randomly.
Pair Corralation between NYSE Composite and Osterweis Fund
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.76 times more return on investment than Osterweis Fund. However, NYSE Composite is 1.31 times less risky than Osterweis Fund. It trades about 0.27 of its potential returns per unit of risk. Osterweis Fund Investor is currently generating about 0.11 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Osterweis Fund Investor
Performance |
| Timeline |
NYSE Composite and Osterweis Fund Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Osterweis Fund Investor
Pair trading matchups for Osterweis Fund
Pair Trading with NYSE Composite and Osterweis Fund
The main advantage of trading using opposite NYSE Composite and Osterweis Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Osterweis Fund 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 Osterweis Fund will offset losses from the drop in Osterweis Fund's long position.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Osterweis Fund vs. Barings Global Floating | Osterweis Fund vs. Ms Global Fixed | Osterweis Fund vs. Scharf Global Opportunity | Osterweis Fund vs. Us Global Leaders |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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