Correlation Between Westcore Plus and Westcore Flexible
Can any of the company-specific risk be diversified away by investing in both Westcore Plus and Westcore Flexible 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 Westcore Plus and Westcore Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Plus Bond and Westcore Flexible Income, you can compare the effects of market volatilities on Westcore Plus and Westcore Flexible 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 Westcore Plus with a short position of Westcore Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Plus and Westcore Flexible.
Diversification Opportunities for Westcore Plus and Westcore Flexible
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westcore and Westcore is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Plus Bond and Westcore Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Flexible Income and Westcore Plus 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 Westcore Plus Bond are associated (or correlated) with Westcore Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Flexible Income has no effect on the direction of Westcore Plus i.e., Westcore Plus and Westcore Flexible go up and down completely randomly.
Pair Corralation between Westcore Plus and Westcore Flexible
Assuming the 90 days horizon Westcore Plus is expected to generate 14.85 times less return on investment than Westcore Flexible. In addition to that, Westcore Plus is 1.92 times more volatile than Westcore Flexible Income. It trades about 0.0 of its total potential returns per unit of risk. Westcore Flexible Income is currently generating about 0.12 per unit of volatility. If you would invest 847.00 in Westcore Flexible Income on December 4, 2024 and sell it today you would earn a total of 20.00 from holding Westcore Flexible Income or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Westcore Plus Bond vs. Westcore Flexible Income
Performance |
| Timeline |
| Westcore Plus Bond |
| Westcore Flexible Income |
Westcore Plus and Westcore Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Plus and Westcore Flexible
The main advantage of trading using opposite Westcore Plus and Westcore Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Plus position performs unexpectedly, Westcore Flexible 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 Westcore Flexible will offset losses from the drop in Westcore Flexible's long position.| Westcore Plus vs. Old Westbury Small | Westcore Plus vs. Needham Small Cap | Westcore Plus vs. Siit Small Cap | Westcore Plus vs. Ep Emerging Markets |
| Westcore Flexible vs. Barings Active Short | Westcore Flexible vs. Artisan High Income | Westcore Flexible vs. Versatile Bond Portfolio | Westcore Flexible vs. Multisector Bond Sma |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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