Correlation Between Old Westbury and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Old Westbury and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Strategic Asset.
Diversification Opportunities for Old Westbury and Strategic Asset
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Old and Strategic is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Old Westbury i.e., Old Westbury and Strategic Asset go up and down completely randomly.
Pair Corralation between Old Westbury and Strategic Asset
Assuming the 90 days horizon Old Westbury is expected to generate 1.32 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, Old Westbury Large is 1.11 times less risky than Strategic Asset. It trades about 0.21 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,286 in Strategic Asset Management on June 12, 2025 and sell it today you would earn a total of 65.00 from holding Strategic Asset Management or generate 2.84% 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. Strategic Asset Management
Performance |
| Timeline |
| Old Westbury Large |
| Strategic Asset Mana |
Old Westbury and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Strategic Asset
The main advantage of trading using opposite Old Westbury and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Old Westbury vs. World Precious Minerals | Old Westbury vs. Goldman Sachs Clean | Old Westbury vs. Oppenheimer Gold Special | Old Westbury vs. Invesco Gold Special |
| Strategic Asset vs. Morningstar Municipal Bond | Strategic Asset vs. Franklin Adjustable Government | Strategic Asset vs. Old Westbury Municipal | Strategic Asset vs. Ab Municipal Bond |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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