Correlation Between Sextant International and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Sextant International 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 International 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 International Fund and Teton Westwood Equity, you can compare the effects of market volatilities on Sextant International 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 International with a short position of Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sextant International and Teton Westwood.
Diversification Opportunities for Sextant International and Teton Westwood
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sextant and Teton is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sextant International 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 International 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 International 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 International i.e., Sextant International and Teton Westwood go up and down completely randomly.
Pair Corralation between Sextant International and Teton Westwood
Assuming the 90 days horizon Sextant International Fund is expected to generate 0.59 times more return on investment than Teton Westwood. However, Sextant International Fund is 1.71 times less risky than Teton Westwood. It trades about -0.09 of its potential returns per unit of risk. Teton Westwood Equity is currently generating about -0.12 per unit of risk. If you would invest 2,402 in Sextant International Fund on September 13, 2024 and sell it today you would lose (81.00) from holding Sextant International Fund or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Sextant International Fund vs. Teton Westwood Equity
Performance |
| Timeline |
| Sextant International |
| Teton Westwood Equity |
Sextant International and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sextant International and Teton Westwood
The main advantage of trading using opposite Sextant International and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sextant International 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 International vs. Sextant Growth Fund | Sextant International vs. Amana Income Fund | Sextant International vs. Amana Growth Fund | Sextant International vs. Sextant Bond Income |
| Teton Westwood vs. Teton Westwood Balanced | Teton Westwood vs. Teton Westwood Small | Teton Westwood vs. The Gabelli Asset | Teton Westwood vs. Teton Westwood Mighty |
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 Stocks Directory module to find actively traded stocks across global markets.
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