Correlation Between Old Westbury and Osterweis Emerging
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Osterweis Emerging 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 Osterweis Emerging 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 Osterweis Emerging Opportunity, you can compare the effects of market volatilities on Old Westbury and Osterweis Emerging 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 Osterweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Osterweis Emerging.
Diversification Opportunities for Old Westbury and Osterweis Emerging
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Old and Osterweis is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Osterweis Emerging Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Emerging 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 Osterweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Emerging has no effect on the direction of Old Westbury i.e., Old Westbury and Osterweis Emerging go up and down completely randomly.
Pair Corralation between Old Westbury and Osterweis Emerging
Assuming the 90 days horizon Old Westbury Large is expected to generate 0.41 times more return on investment than Osterweis Emerging. However, Old Westbury Large is 2.47 times less risky than Osterweis Emerging. It trades about 0.09 of its potential returns per unit of risk. Osterweis Emerging Opportunity is currently generating about -0.02 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 Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. Osterweis Emerging Opportunity
Performance |
| Timeline |
| Old Westbury Large |
| Osterweis Emerging |
Old Westbury and Osterweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Osterweis Emerging
The main advantage of trading using opposite Old Westbury and Osterweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Osterweis Emerging 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 Emerging will offset losses from the drop in Osterweis Emerging'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 |
| Osterweis Emerging vs. Osterweis Fund Investor | Osterweis Emerging vs. Osterweis Strategic Income | Osterweis Emerging vs. Osterweis Strategic Investment | Osterweis Emerging vs. 1290 High Yield |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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