Correlation Between Old Westbury and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Voya Solution 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 Voya Solution 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 Voya Solution Conservative, you can compare the effects of market volatilities on Old Westbury and Voya Solution 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 Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Voya Solution.
Diversification Opportunities for Old Westbury and Voya Solution
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OLD and Voya is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Voya Solution Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Conser 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 Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Conser has no effect on the direction of Old Westbury i.e., Old Westbury and Voya Solution go up and down completely randomly.
Pair Corralation between Old Westbury and Voya Solution
Assuming the 90 days horizon Old Westbury Large is expected to generate 2.3 times more return on investment than Voya Solution. However, Old Westbury is 2.3 times more volatile than Voya Solution Conservative. It trades about 0.2 of its potential returns per unit of risk. Voya Solution Conservative is currently generating about 0.24 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. Voya Solution Conservative
Performance |
| Timeline |
| Old Westbury Large |
| Voya Solution Conser |
Old Westbury and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Voya Solution
The main advantage of trading using opposite Old Westbury and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Voya Solution 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 Voya Solution will offset losses from the drop in Voya Solution's long position.| Old Westbury vs. Davis Financial Fund | Old Westbury vs. Davis Financial Fund | Old Westbury vs. Financial Services Portfolio | Old Westbury vs. Vanguard Financials Index |
| Voya Solution vs. Absolute Convertible Arbitrage | Voya Solution vs. Gabelli Convertible And | Voya Solution vs. Putnam Convertible Securities | Voya Solution vs. Advent Claymore Convertible |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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