Correlation Between Sextant Growth and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Sextant Growth and Teton Westwood 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 Sextant Growth and Teton Westwood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sextant Growth Fund and Teton Westwood Equity, you can compare the effects of market volatilities on Sextant Growth and Teton Westwood 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 Sextant Growth with a short position of Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sextant Growth and Teton Westwood.
Diversification Opportunities for Sextant Growth and Teton Westwood
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sextant and Teton is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sextant Growth Fund and Teton Westwood Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Equity and Sextant Growth 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 Sextant Growth Fund are associated (or correlated) with Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Equity has no effect on the direction of Sextant Growth i.e., Sextant Growth and Teton Westwood go up and down completely randomly.
Pair Corralation between Sextant Growth and Teton Westwood
Assuming the 90 days horizon Sextant Growth is expected to generate 3.1 times less return on investment than Teton Westwood. In addition to that, Sextant Growth is 1.43 times more volatile than Teton Westwood Equity. It trades about 0.05 of its total potential returns per unit of risk. Teton Westwood Equity is currently generating about 0.24 per unit of volatility. If you would invest 1,094 in Teton Westwood Equity on October 20, 2024 and sell it today you would earn a total of 36.00 from holding Teton Westwood Equity or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sextant Growth Fund vs. Teton Westwood Equity
Performance |
| Timeline |
| Sextant Growth |
| Teton Westwood Equity |
Sextant Growth and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sextant Growth and Teton Westwood
The main advantage of trading using opposite Sextant Growth and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sextant Growth position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.| Sextant Growth vs. Sextant International Fund | Sextant Growth vs. Sextant Bond Income | Sextant Growth vs. Sextant Short Term Bond | Sextant Growth vs. Sextant E Fund |
| Teton Westwood vs. Teton Westwood Balanced | Teton Westwood vs. Teton Westwood Balanced | Teton Westwood vs. Teton Westwood Balanced | Teton Westwood vs. Teton Westwood Balanced |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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