Correlation Between Old Westbury and Barings Us
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Barings Us 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 Old Westbury and Barings Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Fixed and Barings High Yield, you can compare the effects of market volatilities on Old Westbury and Barings Us 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 Old Westbury with a short position of Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Barings Us.
Diversification Opportunities for Old Westbury and Barings Us
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Barings is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Fixed and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield and Old Westbury 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 Old Westbury Fixed are associated (or correlated) with Barings Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Old Westbury i.e., Old Westbury and Barings Us go up and down completely randomly.
Pair Corralation between Old Westbury and Barings Us
Assuming the 90 days horizon Old Westbury Fixed is expected to generate 1.34 times more return on investment than Barings Us. However, Old Westbury is 1.34 times more volatile than Barings High Yield. It trades about 0.25 of its potential returns per unit of risk. Barings High Yield is currently generating about 0.22 per unit of risk. If you would invest 997.00 in Old Westbury Fixed on November 9, 2024 and sell it today you would earn a total of 11.00 from holding Old Westbury Fixed or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Fixed vs. Barings High Yield
Performance |
| Timeline |
| Old Westbury Fixed |
| Barings High Yield |
Old Westbury and Barings Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Barings Us
The main advantage of trading using opposite Old Westbury and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Barings Us 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 Barings Us will offset losses from the drop in Barings Us' long position.| Old Westbury vs. Calvert Large Cap | Old Westbury vs. Blackrock Large Cap | Old Westbury vs. Ab Large Cap | Old Westbury vs. Guidemark Large Cap |
| Barings Us vs. Towpath Technology | Barings Us vs. Technology Ultrasector Profund | Barings Us vs. Red Oak Technology | Barings Us vs. Blackrock Science Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |