Correlation Between Old Westbury and Vanguard Emerging
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Vanguard Emerging 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 Vanguard Emerging 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 Vanguard Emerging Markets, you can compare the effects of market volatilities on Old Westbury and Vanguard Emerging 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 Vanguard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Vanguard Emerging.
Diversification Opportunities for Old Westbury and Vanguard Emerging
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Vanguard is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Vanguard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Emerging Markets 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 Vanguard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Emerging Markets has no effect on the direction of Old Westbury i.e., Old Westbury and Vanguard Emerging go up and down completely randomly.
Pair Corralation between Old Westbury and Vanguard Emerging
Assuming the 90 days horizon Old Westbury Large is expected to generate 2.86 times more return on investment than Vanguard Emerging. However, Old Westbury is 2.86 times more volatile than Vanguard Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Vanguard Emerging Markets is currently generating about 0.13 per unit of risk. If you would invest 1,640 in Old Westbury Large on June 11, 2025 and sell it today you would earn a total of 597.00 from holding Old Westbury Large or generate 36.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. Vanguard Emerging Markets
Performance |
| Timeline |
| Old Westbury Large |
| Vanguard Emerging Markets |
Old Westbury and Vanguard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Vanguard Emerging
The main advantage of trading using opposite Old Westbury and Vanguard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Vanguard Emerging 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 Vanguard Emerging will offset losses from the drop in Vanguard Emerging'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 |
| Vanguard Emerging vs. Abr 7525 Volatility | Vanguard Emerging vs. T Rowe Price | Vanguard Emerging vs. Qs Large Cap | Vanguard Emerging vs. Abs Insights Emerging |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |