Correlation Between Summit Global and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Summit Global and Old Westbury 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 Summit Global and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Old Westbury Fixed, you can compare the effects of market volatilities on Summit Global and Old Westbury 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 Summit Global with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Old Westbury.
Diversification Opportunities for Summit Global and Old Westbury
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Summit and Old is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Old Westbury Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Fixed and Summit Global 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 Summit Global Investments are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Fixed has no effect on the direction of Summit Global i.e., Summit Global and Old Westbury go up and down completely randomly.
Pair Corralation between Summit Global and Old Westbury
Assuming the 90 days horizon Summit Global Investments is expected to generate 3.58 times more return on investment than Old Westbury. However, Summit Global is 3.58 times more volatile than Old Westbury Fixed. It trades about 0.09 of its potential returns per unit of risk. Old Westbury Fixed is currently generating about 0.12 per unit of risk. If you would invest 1,720 in Summit Global Investments on September 3, 2025 and sell it today you would earn a total of 55.00 from holding Summit Global Investments or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Global Investments vs. Old Westbury Fixed
Performance |
| Timeline |
| Summit Global Investments |
| Old Westbury Fixed |
Summit Global and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Old Westbury
The main advantage of trading using opposite Summit Global and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Summit Global vs. Nationwide Bailard Technology | Summit Global vs. Pgim Jennison Technology | Summit Global vs. Franklin Biotechnology Discovery | Summit Global vs. Global Technology Portfolio |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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