Correlation Between Old Westbury and Europacific Growth
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Europacific Growth 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 Europacific Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Municipal and Europacific Growth Fund, you can compare the effects of market volatilities on Old Westbury and Europacific Growth 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 Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Europacific Growth.
Diversification Opportunities for Old Westbury and Europacific Growth
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Old and Europacific is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth 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 Municipal are associated (or correlated) with Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of Old Westbury i.e., Old Westbury and Europacific Growth go up and down completely randomly.
Pair Corralation between Old Westbury and Europacific Growth
Assuming the 90 days horizon Old Westbury is expected to generate 10.83 times less return on investment than Europacific Growth. But when comparing it to its historical volatility, Old Westbury Municipal is 4.52 times less risky than Europacific Growth. It trades about 0.13 of its potential returns per unit of risk. Europacific Growth Fund is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 5,359 in Europacific Growth Fund on November 3, 2024 and sell it today you would earn a total of 258.00 from holding Europacific Growth Fund or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Municipal vs. Europacific Growth Fund
Performance |
| Timeline |
| Old Westbury Municipal |
| Europacific Growth |
Old Westbury and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Europacific Growth
The main advantage of trading using opposite Old Westbury and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Europacific Growth 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 Europacific Growth will offset losses from the drop in Europacific Growth's long position.| Old Westbury vs. Fidelity Advisor Technology | Old Westbury vs. Dreyfus Technology Growth | Old Westbury vs. Blackrock Science Technology | Old Westbury vs. Firsthand Technology Opportunities |
| Europacific Growth vs. Rbc Global Equity | Europacific Growth vs. Barings Global Floating | Europacific Growth vs. Pnc Balanced Allocation | Europacific Growth vs. Rbb Fund |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |