Correlation Between Washington Mutual and Steward Funds
Can any of the company-specific risk be diversified away by investing in both Washington Mutual and Steward 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 Washington Mutual and Steward Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Steward Funds , you can compare the effects of market volatilities on Washington Mutual and Steward 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 Washington Mutual with a short position of Steward Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Steward Funds.
Diversification Opportunities for Washington Mutual and Steward Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Washington and Steward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Steward Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Funds and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with Steward Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Funds has no effect on the direction of Washington Mutual i.e., Washington Mutual and Steward Funds go up and down completely randomly.
Pair Corralation between Washington Mutual and Steward Funds
If you would invest 6,325 in Washington Mutual Investors on September 4, 2024 and sell it today you would earn a total of 270.00 from holding Washington Mutual Investors or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Washington Mutual Investors vs. Steward Funds
Performance |
| Timeline |
| Washington Mutual |
| Steward Funds |
Washington Mutual and Steward Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Steward Funds
The main advantage of trading using opposite Washington Mutual and Steward Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, Steward 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 Steward Funds will offset losses from the drop in Steward Funds' long position.| Washington Mutual vs. Franklin High Yield | Washington Mutual vs. Limited Term Tax | Washington Mutual vs. Vanguard California Long Term | Washington Mutual vs. Bbh Intermediate Municipal |
| Steward Funds vs. Us Government Securities | Steward Funds vs. Lord Abbett Government | Steward Funds vs. Dreyfus Government Cash | Steward Funds vs. Dunham Porategovernment Bond |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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