Correlation Between Westcore Flexible and Westcore Plus
Can any of the company-specific risk be diversified away by investing in both Westcore Flexible 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 Flexible 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 Flexible Income and Westcore Plus Bond, you can compare the effects of market volatilities on Westcore Flexible 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 Flexible with a short position of Westcore Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Flexible and Westcore Plus.
Diversification Opportunities for Westcore Flexible and Westcore Plus
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Westcore and WESTCORE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Flexible Income 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 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 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 Flexible i.e., Westcore Flexible and Westcore Plus go up and down completely randomly.
Pair Corralation between Westcore Flexible and Westcore Plus
Assuming the 90 days horizon Westcore Flexible Income is expected to generate 0.68 times more return on investment than Westcore Plus. However, Westcore Flexible Income is 1.48 times less risky than Westcore Plus. It trades about 0.12 of its potential returns per unit of risk. Westcore Plus Bond is currently generating about 0.04 per unit of risk. If you would invest 754.00 in Westcore Flexible Income on September 4, 2024 and sell it today you would earn a total of 123.00 from holding Westcore Flexible Income or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Westcore Flexible Income vs. Westcore Plus Bond
Performance |
| Timeline |
| Westcore Flexible Income |
| Westcore Plus Bond |
Westcore Flexible and Westcore Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Flexible and Westcore Plus
The main advantage of trading using opposite Westcore Flexible and Westcore Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Flexible 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.| Westcore Flexible vs. Westcore Plus Bond | Westcore Flexible vs. Buffalo High Yield | Westcore Flexible vs. Northern High Yield | Westcore Flexible vs. Federated High Yield |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |