Correlation Between Westcore Global and Westcore Flexible
Can any of the company-specific risk be diversified away by investing in both Westcore Global and Westcore Flexible 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 Global and Westcore Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Global Large Cap and Westcore Flexible Income, you can compare the effects of market volatilities on Westcore Global and Westcore Flexible 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 Global with a short position of Westcore Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Global and Westcore Flexible.
Diversification Opportunities for Westcore Global and Westcore Flexible
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westcore and Westcore is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Global Large Cap and Westcore Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Flexible Income and Westcore 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 Westcore Global Large Cap are associated (or correlated) with Westcore Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Flexible Income has no effect on the direction of Westcore Global i.e., Westcore Global and Westcore Flexible go up and down completely randomly.
Pair Corralation between Westcore Global and Westcore Flexible
Assuming the 90 days horizon Westcore Global Large Cap is expected to generate 3.0 times more return on investment than Westcore Flexible. However, Westcore Global is 3.0 times more volatile than Westcore Flexible Income. It trades about 0.09 of its potential returns per unit of risk. Westcore Flexible Income is currently generating about 0.12 per unit of risk. If you would invest 885.00 in Westcore Global Large Cap on August 30, 2024 and sell it today you would earn a total of 352.00 from holding Westcore Global Large Cap or generate 39.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Global Large Cap vs. Westcore Flexible Income
Performance |
| Timeline |
| Westcore Global Large |
| Westcore Flexible Income |
Westcore Global and Westcore Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Global and Westcore Flexible
The main advantage of trading using opposite Westcore Global and Westcore Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Global position performs unexpectedly, Westcore Flexible 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 Flexible will offset losses from the drop in Westcore Flexible's long position.| Westcore Global vs. Westcore Flexible Income | Westcore Global vs. Westcore Plus Bond | Westcore Global vs. Teton Westwood Equity | Westcore Global vs. Westcore Orado Tax Exempt |
| Westcore Flexible vs. Prudential High Yield | Westcore Flexible vs. HUMANA INC | Westcore Flexible vs. Aquagold International | Westcore Flexible vs. Barloworld Ltd ADR |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |