Correlation Between Old Westbury and Ivy Apollo
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Ivy Apollo 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 Ivy Apollo 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 Ivy Apollo Multi Asset, you can compare the effects of market volatilities on Old Westbury and Ivy Apollo 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 Ivy Apollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Ivy Apollo.
Diversification Opportunities for Old Westbury and Ivy Apollo
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Ivy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and Ivy Apollo Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Apollo Multi 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 Ivy Apollo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Apollo Multi has no effect on the direction of Old Westbury i.e., Old Westbury and Ivy Apollo go up and down completely randomly.
Pair Corralation between Old Westbury and Ivy Apollo
Assuming the 90 days horizon Old Westbury Short Term is expected to generate 0.26 times more return on investment than Ivy Apollo. However, Old Westbury Short Term is 3.9 times less risky than Ivy Apollo. It trades about 0.06 of its potential returns per unit of risk. Ivy Apollo Multi Asset is currently generating about 0.01 per unit of risk. If you would invest 1,014 in Old Westbury Short Term on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Old Westbury Short Term or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Old Westbury Short Term vs. Ivy Apollo Multi Asset
Performance |
| Timeline |
| Old Westbury Short |
| Ivy Apollo Multi |
Old Westbury and Ivy Apollo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Ivy Apollo
The main advantage of trading using opposite Old Westbury and Ivy Apollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Ivy Apollo 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 Ivy Apollo will offset losses from the drop in Ivy Apollo's long position.| Old Westbury vs. Old Westbury All | Old Westbury vs. Old Westbury Credit | Old Westbury vs. Old Westbury Large | Old Westbury vs. Old Westbury Municipal |
| Ivy Apollo vs. Aqr Long Short Equity | Ivy Apollo vs. Ab Select Longshort | Ivy Apollo vs. Limited Term Tax | Ivy Apollo vs. Old Westbury Short Term |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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