Correlation Between Old Westbury and Ab International
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Ab International 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 Ab International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Large and Ab International Growth, you can compare the effects of market volatilities on Old Westbury and Ab International 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 Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Ab International.
Diversification Opportunities for Old Westbury and Ab International
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Old and AWPIX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Ab International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab International Growth 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 Large are associated (or correlated) with Ab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab International Growth has no effect on the direction of Old Westbury i.e., Old Westbury and Ab International go up and down completely randomly.
Pair Corralation between Old Westbury and Ab International
Assuming the 90 days horizon Old Westbury Large is expected to generate 0.96 times more return on investment than Ab International. However, Old Westbury Large is 1.04 times less risky than Ab International. It trades about 0.38 of its potential returns per unit of risk. Ab International Growth is currently generating about 0.31 per unit of risk. If you would invest 1,850 in Old Westbury Large on April 16, 2025 and sell it today you would earn a total of 297.00 from holding Old Westbury Large or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. Ab International Growth
Performance |
| Timeline |
| Old Westbury Large |
| Ab International Growth |
Old Westbury and Ab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Ab International
The main advantage of trading using opposite Old Westbury and Ab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Ab International 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 Ab International will offset losses from the drop in Ab International's long position.| Old Westbury vs. Bbh Intermediate Municipal | Old Westbury vs. Morningstar Defensive Bond | Old Westbury vs. Multisector Bond Sma | Old Westbury vs. Gmo High Yield |
| Ab International vs. Bbh Intermediate Municipal | Ab International vs. Morningstar Defensive Bond | Ab International vs. Bts Tactical Fixed | Ab International vs. Ultra Short Term 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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