Correlation Between Omni Small-cap and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Omni Small-cap and Old Westbury 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 Omni Small-cap and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omni Small Cap Value and Old Westbury Municipal, you can compare the effects of market volatilities on Omni Small-cap and Old Westbury 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 Omni Small-cap with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Small-cap and Old Westbury.
Diversification Opportunities for Omni Small-cap and Old Westbury
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Omni and Old is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Omni Small Cap Value and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Municipal and Omni Small-cap 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 Omni Small Cap Value are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Municipal has no effect on the direction of Omni Small-cap i.e., Omni Small-cap and Old Westbury go up and down completely randomly.
Pair Corralation between Omni Small-cap and Old Westbury
Assuming the 90 days horizon Omni Small Cap Value is expected to generate 8.14 times more return on investment than Old Westbury. However, Omni Small-cap is 8.14 times more volatile than Old Westbury Municipal. It trades about 0.04 of its potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.07 per unit of risk. If you would invest 1,513 in Omni Small Cap Value on June 5, 2025 and sell it today you would earn a total of 388.00 from holding Omni Small Cap Value or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omni Small Cap Value vs. Old Westbury Municipal
Performance |
| Timeline |
| Omni Small Cap |
| Old Westbury Municipal |
Omni Small-cap and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Small-cap and Old Westbury
The main advantage of trading using opposite Omni Small-cap and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Small-cap position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Omni Small-cap vs. Aggressive Investors 1 | Omni Small-cap vs. Ultra Small Pany Market | Omni Small-cap vs. Small Cap Value Fund | Omni Small-cap vs. Ultra Small Pany Fund |
| Old Westbury vs. Scharf Global Opportunity | Old Westbury vs. Ab Global Risk | Old Westbury vs. Gamco Global Opportunity | Old Westbury vs. Franklin Mutual Global |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |