Correlation Between Old Westbury and Calvert Green
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Calvert Green 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 Calvert Green 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 Calvert Green Bond, you can compare the effects of market volatilities on Old Westbury and Calvert Green 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 Calvert Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Calvert Green.
Diversification Opportunities for Old Westbury and Calvert Green
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Calvert is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Calvert Green Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Green Bond 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 Calvert Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Green Bond has no effect on the direction of Old Westbury i.e., Old Westbury and Calvert Green go up and down completely randomly.
Pair Corralation between Old Westbury and Calvert Green
Assuming the 90 days horizon Old Westbury is expected to generate 1.64 times less return on investment than Calvert Green. But when comparing it to its historical volatility, Old Westbury Municipal is 2.05 times less risky than Calvert Green. It trades about 0.05 of its potential returns per unit of risk. Calvert Green Bond is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,289 in Calvert Green Bond on October 16, 2024 and sell it today you would earn a total of 86.00 from holding Calvert Green Bond or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Municipal vs. Calvert Green Bond
Performance |
| Timeline |
| Old Westbury Municipal |
| Calvert Green Bond |
Old Westbury and Calvert Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Calvert Green
The main advantage of trading using opposite Old Westbury and Calvert Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Calvert Green 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 Calvert Green will offset losses from the drop in Calvert Green's long position.| Old Westbury vs. Davis Financial Fund | Old Westbury vs. Putnam Global Financials | Old Westbury vs. Fidelity Advisor Financial | Old Westbury vs. Prudential Financial Services |
| Calvert Green vs. Calvert Developed Market | Calvert Green vs. Calvert Developed Market | Calvert Green vs. Calvert Short Duration | Calvert Green vs. Calvert International Responsible |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |