Correlation Between Old Westbury and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Cohen Steers 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 Cohen Steers 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 Cohen Steers Prefrd, you can compare the effects of market volatilities on Old Westbury and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Cohen Steers.
Diversification Opportunities for Old Westbury and Cohen Steers
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Cohen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Cohen Steers Prefrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prefrd 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Prefrd has no effect on the direction of Old Westbury i.e., Old Westbury and Cohen Steers go up and down completely randomly.
Pair Corralation between Old Westbury and Cohen Steers
Assuming the 90 days horizon Old Westbury Municipal is expected to generate 1.03 times more return on investment than Cohen Steers. However, Old Westbury is 1.03 times more volatile than Cohen Steers Prefrd. It trades about 0.02 of its potential returns per unit of risk. Cohen Steers Prefrd is currently generating about 0.0 per unit of risk. If you would invest 1,139 in Old Westbury Municipal on October 25, 2024 and sell it today you would earn a total of 2.00 from holding Old Westbury Municipal or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Old Westbury Municipal vs. Cohen Steers Prefrd
Performance |
| Timeline |
| Old Westbury Municipal |
| Cohen Steers Prefrd |
Old Westbury and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Cohen Steers
The main advantage of trading using opposite Old Westbury and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Old Westbury vs. Tax Managed Mid Small | Old Westbury vs. Ab Small Cap | Old Westbury vs. Kinetics Small Cap | Old Westbury vs. Smallcap Fund Fka |
| Cohen Steers vs. Artisan High Income | Cohen Steers vs. Ambrus Core Bond | Cohen Steers vs. Old Westbury Municipal | Cohen Steers vs. Versatile Bond Portfolio |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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