Correlation Between Old Westbury and Oakhurst Short
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Oakhurst Short 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 Oakhurst Short 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 Oakhurst Short Duration, you can compare the effects of market volatilities on Old Westbury and Oakhurst Short 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 Oakhurst Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Oakhurst Short.
Diversification Opportunities for Old Westbury and Oakhurst Short
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Old and Oakhurst is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and Oakhurst Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Short Duration 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 Oakhurst Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Short Duration has no effect on the direction of Old Westbury i.e., Old Westbury and Oakhurst Short go up and down completely randomly.
Pair Corralation between Old Westbury and Oakhurst Short
Assuming the 90 days horizon Old Westbury Short Term is not expected to generate positive returns. However, Old Westbury Short Term is 2.19 times less risky than Oakhurst Short. It waists most of its returns potential to compensate for thr risk taken. Oakhurst Short is generating about -0.27 per unit of risk. If you would invest 1,010 in Old Westbury Short Term on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Old Westbury Short Term or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Short Term vs. Oakhurst Short Duration
Performance |
| Timeline |
| Old Westbury Short |
| Oakhurst Short Duration |
Old Westbury and Oakhurst Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Oakhurst Short
The main advantage of trading using opposite Old Westbury and Oakhurst Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Oakhurst Short 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 Oakhurst Short will offset losses from the drop in Oakhurst Short's long position.| Old Westbury vs. Putnam Vertible Securities | Old Westbury vs. Gabelli Convertible And | Old Westbury vs. Advent Claymore Convertible | Old Westbury vs. Franklin Vertible Securities |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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