Correlation Between Old Westbury and Dws Equity

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Dws Equity 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 Dws Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Fixed and Dws Equity Sector, you can compare the effects of market volatilities on Old Westbury and Dws Equity 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 Dws Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Dws Equity.

Diversification Opportunities for Old Westbury and Dws Equity

OldDwsDiversified AwayOldDwsDiversified Away100%
0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Old and Dws is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Fixed and Dws Equity Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dws Equity Sector 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 Fixed are associated (or correlated) with Dws Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dws Equity Sector has no effect on the direction of Old Westbury i.e., Old Westbury and Dws Equity go up and down completely randomly.

Pair Corralation between Old Westbury and Dws Equity

Assuming the 90 days horizon Old Westbury Fixed is expected to under-perform the Dws Equity. But the mutual fund apears to be less risky and, when comparing its historical volatility, Old Westbury Fixed is 3.32 times less risky than Dws Equity. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Dws Equity Sector is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,812  in Dws Equity Sector on October 25, 2024 and sell it today you would earn a total of  67.00  from holding Dws Equity Sector or generate 3.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Old Westbury Fixed  vs.  Dws Equity Sector

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -5-4-3-2-101
JavaScript chart by amCharts 3.21.15OWFIX SNPTX
       Timeline  
Old Westbury Fixed 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Old Westbury Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Old Westbury is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan9.951010.0510.1
Dws Equity Sector 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Dws Equity Sector are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dws Equity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1818.218.418.618.819

Old Westbury and Dws Equity Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.66-0.44-0.22-0.071-0.0059160.05920.170.390.610.83 2468
JavaScript chart by amCharts 3.21.15OWFIX SNPTX
       Returns  

Pair Trading with Old Westbury and Dws Equity

The main advantage of trading using opposite Old Westbury and Dws Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Dws Equity 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 Dws Equity will offset losses from the drop in Dws Equity's long position.
The idea behind Old Westbury Fixed and Dws Equity Sector pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk


 

Discover investing ideas

Utilize additional investing modules