Correlation Between Westcore Flexible and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Westcore Flexible and Teton Westwood 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 Flexible and Teton Westwood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Flexible Income and Teton Westwood Equity, you can compare the effects of market volatilities on Westcore Flexible and Teton Westwood 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 Flexible with a short position of Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Flexible and Teton Westwood.
Diversification Opportunities for Westcore Flexible and Teton Westwood
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Westcore and Teton is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Flexible Income and Teton Westwood Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Equity and Westcore Flexible 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 Flexible Income are associated (or correlated) with Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Equity has no effect on the direction of Westcore Flexible i.e., Westcore Flexible and Teton Westwood go up and down completely randomly.
Pair Corralation between Westcore Flexible and Teton Westwood
Assuming the 90 days horizon Westcore Flexible Income is expected to generate 0.16 times more return on investment than Teton Westwood. However, Westcore Flexible Income is 6.3 times less risky than Teton Westwood. It trades about 0.22 of its potential returns per unit of risk. Teton Westwood Equity is currently generating about 0.03 per unit of risk. If you would invest 840.00 in Westcore Flexible Income on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Westcore Flexible Income or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Flexible Income vs. Teton Westwood Equity
Performance |
| Timeline |
| Westcore Flexible Income |
| Teton Westwood Equity |
Westcore Flexible and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Flexible and Teton Westwood
The main advantage of trading using opposite Westcore Flexible and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Flexible position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.| Westcore Flexible vs. Westcore Plus Bond | Westcore Flexible vs. Buffalo High Yield | Westcore Flexible vs. Northern High Yield | Westcore Flexible vs. Federated High Yield |
| Teton Westwood vs. Teton Westwood Balanced | Teton Westwood vs. Teton Westwood Small | Teton Westwood vs. The Gabelli Asset | Teton Westwood vs. Teton Westwood Mighty |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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