Correlation Between Old Westbury and Payden California
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Payden California 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 Payden California 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 Payden California Muncipal, you can compare the effects of market volatilities on Old Westbury and Payden California 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 Payden California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Payden California.
Diversification Opportunities for Old Westbury and Payden California
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Old and Payden is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and Payden California Muncipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden California 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 Payden California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden California has no effect on the direction of Old Westbury i.e., Old Westbury and Payden California go up and down completely randomly.
Pair Corralation between Old Westbury and Payden California
Assuming the 90 days horizon Old Westbury Short Term is expected to generate 0.57 times more return on investment than Payden California. However, Old Westbury Short Term is 1.76 times less risky than Payden California. It trades about 0.19 of its potential returns per unit of risk. Payden California Muncipal is currently generating about 0.08 per unit of risk. If you would invest 971.00 in Old Westbury Short Term on December 2, 2024 and sell it today you would earn a total of 51.00 from holding Old Westbury Short Term or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.71% |
| Values | Daily Returns |
Old Westbury Short Term vs. Payden California Muncipal
Performance |
| Timeline |
| Old Westbury Short |
| Payden California |
Old Westbury and Payden California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Payden California
The main advantage of trading using opposite Old Westbury and Payden California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Payden California 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 Payden California will offset losses from the drop in Payden California's long position.| Old Westbury vs. Pimco Energy Tactical | ||
| Old Westbury vs. Franklin Natural Resources | ||
| Old Westbury vs. Transamerica Mlp Energy | ||
| Old Westbury vs. World Energy Fund |
| Payden California vs. Western Asset Diversified | ||
| Payden California vs. Wilmington Diversified Income | ||
| Payden California vs. Stone Ridge Diversified | ||
| Payden California vs. Harbor Diversified International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |