Correlation Between Westwood Largecap and AMERICAN
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By analyzing existing cross correlation between Westwood Largecap Value and AMERICAN HONDA FINANCE, you can compare the effects of market volatilities on Westwood Largecap and AMERICAN 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 Westwood Largecap with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westwood Largecap and AMERICAN.
Diversification Opportunities for Westwood Largecap and AMERICAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westwood and AMERICAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westwood Largecap Value and AMERICAN HONDA FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN HONDA FINANCE and Westwood Largecap 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 Westwood Largecap Value are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN HONDA FINANCE has no effect on the direction of Westwood Largecap i.e., Westwood Largecap and AMERICAN go up and down completely randomly.
Pair Corralation between Westwood Largecap and AMERICAN
Assuming the 90 days horizon Westwood Largecap Value is expected to generate 1.76 times more return on investment than AMERICAN. However, Westwood Largecap is 1.76 times more volatile than AMERICAN HONDA FINANCE. It trades about 0.06 of its potential returns per unit of risk. AMERICAN HONDA FINANCE is currently generating about 0.03 per unit of risk. If you would invest 1,158 in Westwood Largecap Value on December 1, 2024 and sell it today you would earn a total of 253.00 from holding Westwood Largecap Value or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Westwood Largecap Value vs. AMERICAN HONDA FINANCE
Performance |
| Timeline |
| Westwood Largecap Value |
| AMERICAN HONDA FINANCE |
Westwood Largecap and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westwood Largecap and AMERICAN
The main advantage of trading using opposite Westwood Largecap and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westwood Largecap position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Westwood Largecap vs. Ab Municipal Bond | Westwood Largecap vs. Vanguard Intermediate Term Government | Westwood Largecap vs. Lord Abbett Intermediate | Westwood Largecap vs. Prudential California Muni |
| AMERICAN vs. High Performance Beverages | AMERICAN vs. PepsiCo | AMERICAN vs. SNDL Inc | AMERICAN vs. Fomento Economico Mexicano |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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