Correlation Between Wesmark Growth and Wesmark West
Can any of the company-specific risk be diversified away by investing in both Wesmark Growth and Wesmark West 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 Wesmark Growth and Wesmark West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesmark Growth Fund and Wesmark West Virginia, you can compare the effects of market volatilities on Wesmark Growth and Wesmark West 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 Wesmark Growth with a short position of Wesmark West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Growth and Wesmark West.
Diversification Opportunities for Wesmark Growth and Wesmark West
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wesmark and Wesmark is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Growth Fund and Wesmark West Virginia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesmark West Virginia and Wesmark Growth 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 Wesmark Growth Fund are associated (or correlated) with Wesmark West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesmark West Virginia has no effect on the direction of Wesmark Growth i.e., Wesmark Growth and Wesmark West go up and down completely randomly.
Pair Corralation between Wesmark Growth and Wesmark West
Assuming the 90 days horizon Wesmark Growth Fund is expected to generate 2.64 times more return on investment than Wesmark West. However, Wesmark Growth is 2.64 times more volatile than Wesmark West Virginia. It trades about 0.13 of its potential returns per unit of risk. Wesmark West Virginia is currently generating about 0.23 per unit of risk. If you would invest 2,558 in Wesmark Growth Fund on August 30, 2024 and sell it today you would earn a total of 63.00 from holding Wesmark Growth Fund or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesmark Growth Fund vs. Wesmark West Virginia
Performance |
| Timeline |
| Wesmark Growth |
| Wesmark West Virginia |
Wesmark Growth and Wesmark West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesmark Growth and Wesmark West
The main advantage of trading using opposite Wesmark Growth and Wesmark West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesmark Growth position performs unexpectedly, Wesmark West 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 Wesmark West will offset losses from the drop in Wesmark West's long position.| Wesmark Growth vs. Wesmark Small Pany | Wesmark Growth vs. Wesmark Government Bond | Wesmark Growth vs. Wesmark Balanced Fund | Wesmark Growth vs. Wesmark West Virginia |
| Wesmark West vs. Wesmark Government Bond | Wesmark West vs. Wesmark Growth Fund | Wesmark West vs. Wesmark Balanced Fund | Wesmark West vs. Wesmark Small Pany |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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