Correlation Between Old Westbury and Fidelity California
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Fidelity California 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 Fidelity California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Municipal and Fidelity California Municipal, you can compare the effects of market volatilities on Old Westbury and Fidelity California 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 Fidelity California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Fidelity California.
Diversification Opportunities for Old Westbury and Fidelity California
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Old and Fidelity is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Fidelity California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity California 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 Municipal are associated (or correlated) with Fidelity California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity California has no effect on the direction of Old Westbury i.e., Old Westbury and Fidelity California go up and down completely randomly.
Pair Corralation between Old Westbury and Fidelity California
Assuming the 90 days horizon Old Westbury Municipal is expected to generate 0.8 times more return on investment than Fidelity California. However, Old Westbury Municipal is 1.25 times less risky than Fidelity California. It trades about 0.37 of its potential returns per unit of risk. Fidelity California Municipal is currently generating about 0.25 per unit of risk. If you would invest 1,140 in Old Westbury Municipal on June 1, 2025 and sell it today you would earn a total of 9.00 from holding Old Westbury Municipal or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Municipal vs. Fidelity California Municipal
Performance |
| Timeline |
| Old Westbury Municipal |
| Fidelity California |
Old Westbury and Fidelity California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Fidelity California
The main advantage of trading using opposite Old Westbury and Fidelity California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Fidelity California 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 Fidelity California will offset losses from the drop in Fidelity California's long position.| Old Westbury vs. Rationalpier 88 Convertible | Old Westbury vs. Putnam Convertible Securities | Old Westbury vs. Calamos Dynamic Convertible | Old Westbury vs. Fidelity Sai Convertible |
| Fidelity California vs. Lifestyle Ii Moderate | Fidelity California vs. Tiaa Cref Lifestyle Moderate | Fidelity California vs. Pgim Conservative Retirement | Fidelity California vs. Sa Worldwide Moderate |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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