Correlation Between Old Westbury and Income Fund
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Income Fund 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 Income Fund 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 Income Fund Institutional, you can compare the effects of market volatilities on Old Westbury and Income Fund 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 Income Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Income Fund.
Diversification Opportunities for Old Westbury and Income Fund
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Old and Income is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Income Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Fund Institutional 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 Income Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Fund Institutional has no effect on the direction of Old Westbury i.e., Old Westbury and Income Fund go up and down completely randomly.
Pair Corralation between Old Westbury and Income Fund
Assuming the 90 days horizon Old Westbury is expected to generate 1.44 times less return on investment than Income Fund. But when comparing it to its historical volatility, Old Westbury Municipal is 3.11 times less risky than Income Fund. It trades about 0.33 of its potential returns per unit of risk. Income Fund Institutional is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Income Fund Institutional on May 29, 2025 and sell it today you would earn a total of 23.00 from holding Income Fund Institutional or generate 2.54% 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 Municipal vs. Income Fund Institutional
Performance |
| Timeline |
| Old Westbury Municipal |
| Income Fund Institutional |
Old Westbury and Income Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Income Fund
The main advantage of trading using opposite Old Westbury and Income Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Income Fund 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 Income Fund will offset losses from the drop in Income Fund's long position.| Old Westbury vs. Pgim Conservative Retirement | Old Westbury vs. Tiaa Cref Lifestyle Moderate | Old Westbury vs. Retirement Living Through | Old Westbury vs. Putnam Retirement Advantage |
| Income Fund vs. Tributary Smallmid Cap | Income Fund vs. Tributary Smallmid Cap | Income Fund vs. Balanced Fund Institutional | Income Fund vs. Balanced Fund Institutional |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |