Correlation Between Old Westbury and Guidepath Multi
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Guidepath Multi 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 Old Westbury and Guidepath Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Fixed and Guidepath Multi Asset Income, you can compare the effects of market volatilities on Old Westbury and Guidepath Multi 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 Old Westbury with a short position of Guidepath Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Guidepath Multi.
Diversification Opportunities for Old Westbury and Guidepath Multi
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Guidepath is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Fixed and Guidepath Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Multi Asset and Old Westbury 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 Old Westbury Fixed are associated (or correlated) with Guidepath Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Multi Asset has no effect on the direction of Old Westbury i.e., Old Westbury and Guidepath Multi go up and down completely randomly.
Pair Corralation between Old Westbury and Guidepath Multi
Assuming the 90 days horizon Old Westbury is expected to generate 1.63 times less return on investment than Guidepath Multi. But when comparing it to its historical volatility, Old Westbury Fixed is 1.99 times less risky than Guidepath Multi. It trades about 0.22 of its potential returns per unit of risk. Guidepath Multi Asset Income is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,114 in Guidepath Multi Asset Income on June 6, 2025 and sell it today you would earn a total of 49.00 from holding Guidepath Multi Asset Income or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Fixed vs. Guidepath Multi Asset Income
Performance |
| Timeline |
| Old Westbury Fixed |
| Guidepath Multi Asset |
Old Westbury and Guidepath Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Guidepath Multi
The main advantage of trading using opposite Old Westbury and Guidepath Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Guidepath Multi 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 Guidepath Multi will offset losses from the drop in Guidepath Multi's long position.| Old Westbury vs. Queens Road Small | Old Westbury vs. Boston Partners Small | Old Westbury vs. Applied Finance Explorer | Old Westbury vs. Ultrasmall Cap Profund Ultrasmall Cap |
| Guidepath Multi vs. Matson Money International | Guidepath Multi vs. Rbc Money Market | Guidepath Multi vs. Money Market Obligations | Guidepath Multi vs. Hsbc Treasury Money |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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