Correlation Between Old Westbury and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Hussman Strategic 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 Hussman Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Large and Hussman Strategic Dividend, you can compare the effects of market volatilities on Old Westbury and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Hussman Strategic.
Diversification Opportunities for Old Westbury and Hussman Strategic
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Old and Hussman is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Hussman Strategic Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic 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 Large are associated (or correlated) with Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic has no effect on the direction of Old Westbury i.e., Old Westbury and Hussman Strategic go up and down completely randomly.
Pair Corralation between Old Westbury and Hussman Strategic
Assuming the 90 days horizon Old Westbury Large is expected to generate 8.11 times more return on investment than Hussman Strategic. However, Old Westbury is 8.11 times more volatile than Hussman Strategic Dividend. It trades about 0.09 of its potential returns per unit of risk. Hussman Strategic Dividend is currently generating about 0.44 per unit of risk. If you would invest 2,132 in Old Westbury Large on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Old Westbury Large or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. Hussman Strategic Dividend
Performance |
| Timeline |
| Old Westbury Large |
| Hussman Strategic |
Old Westbury and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Hussman Strategic
The main advantage of trading using opposite Old Westbury and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's long position.| Old Westbury vs. Prudential Government Income | Old Westbury vs. Franklin Adjustable Government | Old Westbury vs. Payden Government Fund | Old Westbury vs. Short Term Government Fund |
| Hussman Strategic vs. Hussman Strategic Allocation | Hussman Strategic vs. Hussman Strategic Growth | Hussman Strategic vs. Hussman Strategic Total | Hussman Strategic vs. Money Market Obligations |
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 Positions Ratings module to 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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |