Correlation Between Old Westbury and Federated Global
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Federated Global 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 Federated Global 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 Federated Global Allocation, you can compare the effects of market volatilities on Old Westbury and Federated Global 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 Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Federated Global.
Diversification Opportunities for Old Westbury and Federated Global
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between OLD and Federated is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All 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 Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Old Westbury i.e., Old Westbury and Federated Global go up and down completely randomly.
Pair Corralation between Old Westbury and Federated Global
Assuming the 90 days horizon Old Westbury Large is expected to generate 1.23 times more return on investment than Federated Global. However, Old Westbury is 1.23 times more volatile than Federated Global Allocation. It trades about 0.2 of its potential returns per unit of risk. Federated Global Allocation is currently generating about 0.21 per unit of risk. If you would invest 2,088 in Old Westbury Large on June 9, 2025 and sell it today you would earn a total of 138.00 from holding Old Westbury Large or generate 6.61% 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. Federated Global Allocation
Performance |
| Timeline |
| Old Westbury Large |
| Federated Global All |
Old Westbury and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Federated Global
The main advantage of trading using opposite Old Westbury and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Federated Global 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 Federated Global will offset losses from the drop in Federated Global's long position.| Old Westbury vs. Nasdaq 100 Fund Class | Old Westbury vs. Eic Value Fund | Old Westbury vs. Vanguard Intermediate Term Tax Exempt | Old Westbury vs. Growth Fund C |
| Federated Global vs. Allianzgi Convertible Income | Federated Global vs. Lord Abbett Convertible | Federated Global vs. Fidelity Sai Convertible | Federated Global vs. Putnam Convertible Securities |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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