Correlation Between Westcore International and Westcore Plus
Can any of the company-specific risk be diversified away by investing in both Westcore International and Westcore Plus 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 International and Westcore Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore International Small Cap and Westcore Plus Bond, you can compare the effects of market volatilities on Westcore International and Westcore Plus 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 International with a short position of Westcore Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore International and Westcore Plus.
Diversification Opportunities for Westcore International and Westcore Plus
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Westcore and Westcore is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Westcore International Small C and Westcore Plus Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Plus Bond and Westcore International 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 International Small Cap are associated (or correlated) with Westcore Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Plus Bond has no effect on the direction of Westcore International i.e., Westcore International and Westcore Plus go up and down completely randomly.
Pair Corralation between Westcore International and Westcore Plus
If you would invest 912.00 in Westcore Plus Bond on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Westcore Plus Bond or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Westcore International Small C vs. Westcore Plus Bond
Performance |
| Timeline |
| Westcore International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Westcore Plus Bond |
Westcore International and Westcore Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore International and Westcore Plus
The main advantage of trading using opposite Westcore International and Westcore Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore International position performs unexpectedly, Westcore Plus 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 Westcore Plus will offset losses from the drop in Westcore Plus' long position.The idea behind Westcore International Small Cap and Westcore Plus Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Westcore Plus vs. Large Cap Fund | Westcore Plus vs. James Balanced Golden | Westcore Plus vs. Aberdeen Global High | Westcore Plus vs. Loomis Sayles 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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