Correlation Between Old Westbury and Barings Global
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Barings Global 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 Barings Global 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 Barings Global Floating, you can compare the effects of market volatilities on Old Westbury and Barings Global 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 Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Barings Global.
Diversification Opportunities for Old Westbury and Barings Global
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Old and Barings is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating 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 Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Floating has no effect on the direction of Old Westbury i.e., Old Westbury and Barings Global go up and down completely randomly.
Pair Corralation between Old Westbury and Barings Global
Assuming the 90 days horizon Old Westbury Municipal is expected to under-perform the Barings Global. In addition to that, Old Westbury is 1.56 times more volatile than Barings Global Floating. It trades about -0.13 of its total potential returns per unit of risk. Barings Global Floating is currently generating about 0.18 per unit of volatility. If you would invest 860.00 in Barings Global Floating on September 25, 2024 and sell it today you would earn a total of 15.00 from holding Barings Global Floating or generate 1.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Old Westbury Municipal vs. Barings Global Floating
Performance |
Timeline |
Old Westbury Municipal |
Barings Global Floating |
Old Westbury and Barings Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Old Westbury and Barings Global
The main advantage of trading using opposite Old Westbury and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Barings Global 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 Barings Global will offset losses from the drop in Barings Global's long position.Old Westbury vs. Wealthbuilder Conservative Allocation | Old Westbury vs. Calvert Conservative Allocation | Old Westbury vs. Western Asset Diversified | Old Westbury vs. Wilmington Diversified Income |
Barings Global vs. Transamerica Intermediate Muni | Barings Global vs. Gamco Global Telecommunications | Barings Global vs. Ishares Municipal Bond | Barings Global vs. Old Westbury Municipal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |