Correlation Between Wilmington Global and Wilmington Municipal
Can any of the company-specific risk be diversified away by investing in both Wilmington Global and Wilmington Municipal 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 Wilmington Global and Wilmington Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Global Alpha and Wilmington Municipal Bond, you can compare the effects of market volatilities on Wilmington Global and Wilmington Municipal 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 Wilmington Global with a short position of Wilmington Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Global and Wilmington Municipal.
Diversification Opportunities for Wilmington Global and Wilmington Municipal
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wilmington and WILMINGTON is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Global Alpha and Wilmington Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Municipal Bond and Wilmington 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 Wilmington Global Alpha are associated (or correlated) with Wilmington Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Municipal Bond has no effect on the direction of Wilmington Global i.e., Wilmington Global and Wilmington Municipal go up and down completely randomly.
Pair Corralation between Wilmington Global and Wilmington Municipal
Assuming the 90 days horizon Wilmington Global Alpha is expected to generate 1.52 times more return on investment than Wilmington Municipal. However, Wilmington Global is 1.52 times more volatile than Wilmington Municipal Bond. It trades about 0.07 of its potential returns per unit of risk. Wilmington Municipal Bond is currently generating about 0.04 per unit of risk. If you would invest 1,302 in Wilmington Global Alpha on November 18, 2024 and sell it today you would earn a total of 16.00 from holding Wilmington Global Alpha or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Global Alpha vs. Wilmington Municipal Bond
Performance |
| Timeline |
| Wilmington Global Alpha |
| Wilmington Municipal Bond |
Wilmington Global and Wilmington Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Global and Wilmington Municipal
The main advantage of trading using opposite Wilmington Global and Wilmington Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Global position performs unexpectedly, Wilmington Municipal 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 Wilmington Municipal will offset losses from the drop in Wilmington Municipal's long position.| Wilmington Global vs. Cref Money Market | Wilmington Global vs. Edward Jones Money | Wilmington Global vs. Hewitt Money Market | Wilmington Global vs. Chestnut Street Exchange |
| Wilmington Municipal vs. Wilmington Global Alpha | Wilmington Municipal vs. Wilmington Global Alpha | Wilmington Municipal vs. Wilmington Broad Market | Wilmington Municipal vs. Wilmington Municipal 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |