Correlation Between Old Westbury and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Calvert Short 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 Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Small and Calvert Short Duration, you can compare the effects of market volatilities on Old Westbury and Calvert Short 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 Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Calvert Short.
Diversification Opportunities for Old Westbury and Calvert Short
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Old and Calvert is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Small and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration 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 Small are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Old Westbury i.e., Old Westbury and Calvert Short go up and down completely randomly.
Pair Corralation between Old Westbury and Calvert Short
Assuming the 90 days horizon Old Westbury Small is expected to generate 4.54 times more return on investment than Calvert Short. However, Old Westbury is 4.54 times more volatile than Calvert Short Duration. It trades about 0.17 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.24 per unit of risk. If you would invest 1,706 in Old Westbury Small on May 29, 2025 and sell it today you would earn a total of 116.00 from holding Old Westbury Small or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Small vs. Calvert Short Duration
Performance |
| Timeline |
| Old Westbury Small |
| Calvert Short Duration |
Old Westbury and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Calvert Short
The main advantage of trading using opposite Old Westbury and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Calvert Short 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 Calvert Short will offset losses from the drop in Calvert Short's long position.| Old Westbury vs. Rbc Global Equity | Old Westbury vs. Asg Global Alternatives | Old Westbury vs. Qs Global Equity | Old Westbury vs. Gmo Global Equity |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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