Correlation Between Wilmington Funds and Short Term
Can any of the company-specific risk be diversified away by investing in both Wilmington Funds and Short Term 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 Wilmington Funds and Short Term into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Funds and Short Term Government Fund, you can compare the effects of market volatilities on Wilmington Funds and Short Term 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 Wilmington Funds with a short position of Short Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Funds and Short Term.
Diversification Opportunities for Wilmington Funds and Short Term
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wilmington and Short is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Funds and Short Term Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Government and Wilmington Funds 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 Wilmington Funds are associated (or correlated) with Short Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Government has no effect on the direction of Wilmington Funds i.e., Wilmington Funds and Short Term go up and down completely randomly.
Pair Corralation between Wilmington Funds and Short Term
Assuming the 90 days horizon Wilmington Funds is expected to generate 0.88 times more return on investment than Short Term. However, Wilmington Funds is 1.14 times less risky than Short Term. It trades about 0.13 of its potential returns per unit of risk. Short Term Government Fund is currently generating about 0.06 per unit of risk. If you would invest 99.00 in Wilmington Funds on March 29, 2025 and sell it today you would earn a total of 1.00 from holding Wilmington Funds or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Funds vs. Short Term Government Fund
Performance |
| Timeline |
| Wilmington Funds |
| Short Term Government |
Wilmington Funds and Short Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Funds and Short Term
The main advantage of trading using opposite Wilmington Funds and Short Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Funds position performs unexpectedly, Short Term 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 Short Term will offset losses from the drop in Short Term's long position.| Wilmington Funds vs. Mesirow Financial High | Wilmington Funds vs. Blackrock Financial Institutions | Wilmington Funds vs. Financials Ultrasector Profund | Wilmington Funds vs. Vanguard Financials Index |
| Short Term vs. Old Westbury Fixed | Short Term vs. Praxis Impact Bond | Short Term vs. Vanguard Intermediate Term Bond | Short Term vs. Ab Bond Inflation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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