Correlation Between Old Westbury and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Voya Multi-manager 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 Voya Multi-manager 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 Voya Multi Manager Mid, you can compare the effects of market volatilities on Old Westbury and Voya Multi-manager 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 Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Voya Multi-manager.
Diversification Opportunities for Old Westbury and Voya Multi-manager
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Old and Voya is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Old Westbury i.e., Old Westbury and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Old Westbury and Voya Multi-manager
Assuming the 90 days horizon Old Westbury is expected to generate 10.3 times less return on investment than Voya Multi-manager. But when comparing it to its historical volatility, Old Westbury Municipal is 4.09 times less risky than Voya Multi-manager. It trades about 0.13 of its potential returns per unit of risk. Voya Multi Manager Mid is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Voya Multi Manager Mid on November 2, 2024 and sell it today you would earn a total of 43.00 from holding Voya Multi Manager Mid or generate 4.57% 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. Voya Multi Manager Mid
Performance |
| Timeline |
| Old Westbury Municipal |
| Voya Multi Manager |
Old Westbury and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Voya Multi-manager
The main advantage of trading using opposite Old Westbury and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Voya Multi-manager 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 Voya Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Old Westbury vs. The Equity Growth | Old Westbury vs. T Rowe Price | Old Westbury vs. The Hartford Growth | Old Westbury vs. Eip Growth And |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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