Correlation Between Teton Westwood and Sextant International
Can any of the company-specific risk be diversified away by investing in both Teton Westwood and Sextant International 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 Teton Westwood and Sextant International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teton Westwood Equity and Sextant International Fund, you can compare the effects of market volatilities on Teton Westwood and Sextant International 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 Teton Westwood with a short position of Sextant International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teton Westwood and Sextant International.
Diversification Opportunities for Teton Westwood and Sextant International
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Teton and Sextant is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Teton Westwood Equity and Sextant International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant International and Teton Westwood 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 Teton Westwood Equity are associated (or correlated) with Sextant International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant International has no effect on the direction of Teton Westwood i.e., Teton Westwood and Sextant International go up and down completely randomly.
Pair Corralation between Teton Westwood and Sextant International
Assuming the 90 days horizon Teton Westwood Equity is expected to under-perform the Sextant International. In addition to that, Teton Westwood is 1.71 times more volatile than Sextant International Fund. It trades about -0.12 of its total potential returns per unit of risk. Sextant International Fund is currently generating about -0.09 per unit of volatility. 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 |
Teton Westwood Equity vs. Sextant International Fund
Performance |
| Timeline |
| Teton Westwood Equity |
| Sextant International |
Teton Westwood and Sextant International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teton Westwood and Sextant International
The main advantage of trading using opposite Teton Westwood and Sextant International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teton Westwood position performs unexpectedly, Sextant International 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 Sextant International will offset losses from the drop in Sextant International's long position.| Teton Westwood vs. Teton Westwood Balanced | Teton Westwood vs. Teton Westwood Small | Teton Westwood vs. The Gabelli Asset | Teton Westwood vs. Teton Westwood Mighty |
| Sextant International vs. Sextant Growth Fund | Sextant International vs. Amana Income Fund | Sextant International vs. Amana Growth Fund | Sextant International vs. Sextant Bond Income |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |