Correlation Between Old Westbury and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Saat Moderate 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 Saat Moderate 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 Saat Moderate Strategy, you can compare the effects of market volatilities on Old Westbury and Saat Moderate 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 Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Saat Moderate.
Diversification Opportunities for Old Westbury and Saat Moderate
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Old and Saat is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy 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 Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Old Westbury i.e., Old Westbury and Saat Moderate go up and down completely randomly.
Pair Corralation between Old Westbury and Saat Moderate
Assuming the 90 days horizon Old Westbury is expected to generate 2.0 times less return on investment than Saat Moderate. But when comparing it to its historical volatility, Old Westbury Municipal is 2.37 times less risky than Saat Moderate. It trades about 0.36 of its potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,214 in Saat Moderate Strategy on June 10, 2025 and sell it today you would earn a total of 20.00 from holding Saat Moderate Strategy or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Old Westbury Municipal vs. Saat Moderate Strategy
Performance |
| Timeline |
| Old Westbury Municipal |
| Saat Moderate Strategy |
Old Westbury and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Saat Moderate
The main advantage of trading using opposite Old Westbury and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Saat Moderate 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 Saat Moderate will offset losses from the drop in Saat Moderate's long position.| Old Westbury vs. Us Government Securities | Old Westbury vs. Franklin Adjustable Government | Old Westbury vs. Davis Government Bond | Old Westbury vs. Aig Government Money |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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