Correlation Between Westcore Global and American Funds
Can any of the company-specific risk be diversified away by investing in both Westcore Global and American Funds 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 Global and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Global Large Cap and American Funds Capital, you can compare the effects of market volatilities on Westcore Global and American Funds 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 Global with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Global and American Funds.
Diversification Opportunities for Westcore Global and American Funds
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Westcore and American is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Global Large Cap and American Funds Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Capital and Westcore Global 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 Global Large Cap are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Capital has no effect on the direction of Westcore Global i.e., Westcore Global and American Funds go up and down completely randomly.
Pair Corralation between Westcore Global and American Funds
Assuming the 90 days horizon Westcore Global Large Cap is expected to generate 1.06 times more return on investment than American Funds. However, Westcore Global is 1.06 times more volatile than American Funds Capital. It trades about 0.09 of its potential returns per unit of risk. American Funds Capital is currently generating about 0.09 per unit of risk. If you would invest 888.00 in Westcore Global Large Cap on September 4, 2024 and sell it today you would earn a total of 343.00 from holding Westcore Global Large Cap or generate 38.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Westcore Global Large Cap vs. American Funds Capital
Performance |
| Timeline |
| Westcore Global Large |
| American Funds Capital |
Westcore Global and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Global and American Funds
The main advantage of trading using opposite Westcore Global and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Global position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Westcore Global vs. John Hancock Money | Westcore Global vs. Lord Abbett Emerging | Westcore Global vs. Prudential Government Money | Westcore Global vs. Matson Money Equity |
| American Funds vs. Calamos Market Neutral | American Funds vs. Legg Mason Partners | American Funds vs. Transamerica Emerging Markets | American Funds vs. Massmutual Select Diversified |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |