Correlation Between Hunter Small and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Hunter Small 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 Hunter Small and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Small Cap and Old Westbury Large, you can compare the effects of market volatilities on Hunter Small 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 Hunter Small with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Old Westbury.
Diversification Opportunities for Hunter Small and Old Westbury
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunter and OLD is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small 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 Hunter Small 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 Hunter Small 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 Hunter Small i.e., Hunter Small and Old Westbury go up and down completely randomly.
Pair Corralation between Hunter Small and Old Westbury
Assuming the 90 days horizon Hunter Small Cap is expected to generate 1.99 times more return on investment than Old Westbury. However, Hunter Small is 1.99 times more volatile than Old Westbury Large. It trades about 0.15 of its potential returns per unit of risk. Old Westbury Large is currently generating about 0.22 per unit of risk. If you would invest 1,157 in Hunter Small Cap on June 3, 2025 and sell it today you would earn a total of 115.00 from holding Hunter Small Cap or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Old Westbury Large
Performance |
| Timeline |
| Hunter Small Cap |
| Old Westbury Large |
Hunter Small and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Old Westbury
The main advantage of trading using opposite Hunter Small and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small 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.| Hunter Small vs. Barings Active Short | Hunter Small vs. Calvert Short Duration | Hunter Small vs. American Funds Tax Exempt | Hunter Small vs. Western Asset Short |
| Old Westbury vs. Barings High Yield | Old Westbury vs. Ironclad Managed Risk | Old Westbury vs. Aquila Three Peaks | Old Westbury vs. Morningstar Aggressive Growth |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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