Correlation Between Dana Large and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Dana Large 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 Dana Large and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Old Westbury Large, you can compare the effects of market volatilities on Dana Large 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 Dana Large with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Old Westbury.
Diversification Opportunities for Dana Large and Old Westbury
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Dana and Old is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap 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 Dana Large 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 Dana Large Cap 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 Dana Large i.e., Dana Large and Old Westbury go up and down completely randomly.
Pair Corralation between Dana Large and Old Westbury
Assuming the 90 days horizon Dana Large Cap is expected to generate 1.04 times more return on investment than Old Westbury. However, Dana Large is 1.04 times more volatile than Old Westbury Large. It trades about 0.5 of its potential returns per unit of risk. Old Westbury Large is currently generating about 0.26 per unit of risk. If you would invest 2,277 in Dana Large Cap on April 29, 2025 and sell it today you would earn a total of 96.00 from holding Dana Large Cap or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Old Westbury Large
Performance |
| Timeline |
| Dana Large Cap |
| Old Westbury Large |
Dana Large and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Old Westbury
The main advantage of trading using opposite Dana Large and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large 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.| Dana Large vs. Calamos Global Growth | Dana Large vs. Barings Global Floating | Dana Large vs. Artisan Global Opportunities | Dana Large vs. Rbc Global Equity |
| Old Westbury vs. Ab Bond Inflation | Old Westbury vs. Ab Bond Inflation | Old Westbury vs. The National Tax Free | Old Westbury vs. Rbc Ultra Short Fixed |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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