Correlation Between Wesmark Government and Small Pany
Can any of the company-specific risk be diversified away by investing in both Wesmark Government and Small Pany 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 Wesmark Government and Small Pany into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesmark Government Bond and Small Pany Growth, you can compare the effects of market volatilities on Wesmark Government and Small Pany 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 Wesmark Government with a short position of Small Pany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Government and Small Pany.
Diversification Opportunities for Wesmark Government and Small Pany
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wesmark and Small is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Government Bond and Small Pany Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Pany Growth and Wesmark Government 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 Wesmark Government Bond are associated (or correlated) with Small Pany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Pany Growth has no effect on the direction of Wesmark Government i.e., Wesmark Government and Small Pany go up and down completely randomly.
Pair Corralation between Wesmark Government and Small Pany
Assuming the 90 days horizon Wesmark Government is expected to generate 2.63 times less return on investment than Small Pany. But when comparing it to its historical volatility, Wesmark Government Bond is 5.36 times less risky than Small Pany. It trades about 0.2 of its potential returns per unit of risk. Small Pany Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 873.00 in Small Pany Growth on June 10, 2025 and sell it today you would earn a total of 74.00 from holding Small Pany Growth or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesmark Government Bond vs. Small Pany Growth
Performance |
| Timeline |
| Wesmark Government Bond |
| Small Pany Growth |
Wesmark Government and Small Pany Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesmark Government and Small Pany
The main advantage of trading using opposite Wesmark Government and Small Pany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesmark Government position performs unexpectedly, Small Pany 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 Small Pany will offset losses from the drop in Small Pany's long position.| Wesmark Government vs. Wesmark Growth Fund | Wesmark Government vs. Wesmark Small Pany | Wesmark Government vs. Wesmark Balanced Fund | Wesmark Government vs. Wesmark West Virginia |
| Small Pany vs. Mid Cap Growth | Small Pany vs. Growth Portfolio Class | Small Pany vs. Morgan Stanley Multi | Small Pany vs. Emerging Markets Portfolio |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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