Correlation Between Ab Global and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Old Westbury Large, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Old Westbury.
Diversification Opportunities for Ab Global and Old Westbury
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CBSYX and Old is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Old Westbury Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Large and Ab 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 Ab Global Risk 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 Large has no effect on the direction of Ab Global i.e., Ab Global and Old Westbury go up and down completely randomly.
Pair Corralation between Ab Global and Old Westbury
Assuming the 90 days horizon Ab Global Risk is expected to generate 0.65 times more return on investment than Old Westbury. However, Ab Global Risk is 1.53 times less risky than Old Westbury. It trades about 0.02 of its potential returns per unit of risk. Old Westbury Large is currently generating about -0.07 per unit of risk. If you would invest 1,694 in Ab Global Risk on August 24, 2025 and sell it today you would earn a total of 6.00 from holding Ab Global Risk or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Old Westbury Large
Performance |
| Timeline |
| Ab Global Risk |
| Old Westbury Large |
Ab Global and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Old Westbury
The main advantage of trading using opposite Ab Global and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab All Market |
| Old Westbury vs. Calvert Moderate Allocation | Old Westbury vs. Alternative Asset Allocation | Old Westbury vs. Rational Strategic Allocation | Old Westbury vs. Locorr Strategic Allocation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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