Correlation Between Old Westbury and Dunham Focused
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Dunham Focused 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 Dunham Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Short Term and Dunham Focused Large, you can compare the effects of market volatilities on Old Westbury and Dunham Focused 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 Dunham Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Dunham Focused.
Diversification Opportunities for Old Westbury and Dunham Focused
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Old and Dunham is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and Dunham Focused Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Focused Large 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 Short Term are associated (or correlated) with Dunham Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Focused Large has no effect on the direction of Old Westbury i.e., Old Westbury and Dunham Focused go up and down completely randomly.
Pair Corralation between Old Westbury and Dunham Focused
Assuming the 90 days horizon Old Westbury is expected to generate 16.04 times less return on investment than Dunham Focused. But when comparing it to its historical volatility, Old Westbury Short Term is 8.12 times less risky than Dunham Focused. It trades about 0.16 of its potential returns per unit of risk. Dunham Focused Large is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 4,250 in Dunham Focused Large on September 3, 2024 and sell it today you would earn a total of 274.00 from holding Dunham Focused Large or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Short Term vs. Dunham Focused Large
Performance |
| Timeline |
| Old Westbury Short |
| Dunham Focused Large |
Old Westbury and Dunham Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Dunham Focused
The main advantage of trading using opposite Old Westbury and Dunham Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Dunham Focused 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 Dunham Focused will offset losses from the drop in Dunham Focused's long position.| Old Westbury vs. SPACE | Old Westbury vs. Bayview Acquisition Corp | Old Westbury vs. Ampleforth | Old Westbury vs. ionet |
| Dunham Focused vs. American Funds The | Dunham Focused vs. American Funds The | Dunham Focused vs. Growth Fund Of | Dunham Focused vs. Growth Fund Of |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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