Correlation Between Westcore Plus and International Bond
Can any of the company-specific risk be diversified away by investing in both Westcore Plus and International Bond 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 International Bond 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 International Bond Fund, you can compare the effects of market volatilities on Westcore Plus and International Bond 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 International Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Plus and International Bond.
Diversification Opportunities for Westcore Plus and International Bond
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WESTCORE and International is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Plus Bond and International Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Bond 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 International Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bond has no effect on the direction of Westcore Plus i.e., Westcore Plus and International Bond go up and down completely randomly.
Pair Corralation between Westcore Plus and International Bond
If you would invest 939.00 in Westcore Plus Bond on September 4, 2024 and sell it today you would earn a total of 8.00 from holding Westcore Plus Bond or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Westcore Plus Bond vs. International Bond Fund
Performance |
| Timeline |
| Westcore Plus Bond |
| International Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Westcore Plus and International Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Plus and International Bond
The main advantage of trading using opposite Westcore Plus and International Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Plus position performs unexpectedly, International Bond 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 International Bond will offset losses from the drop in International Bond's long position.| Westcore Plus vs. Large Cap Fund | Westcore Plus vs. James Balanced Golden | Westcore Plus vs. Aberdeen Global High | Westcore Plus vs. Loomis Sayles Bond |
| International Bond vs. T Rowe Price | International Bond vs. Global Gold Fund | International Bond vs. Inflation Adjusted Bond Fund | International Bond vs. Loomis Sayles Global |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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