Correlation Between Westfield Capital and American Funds
Can any of the company-specific risk be diversified away by investing in both Westfield Capital and American Funds 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 Westfield Capital and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westfield Capital Dividend and American Funds Fundamental, you can compare the effects of market volatilities on Westfield Capital and American Funds 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 Westfield Capital with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westfield Capital and American Funds.
Diversification Opportunities for Westfield Capital and American Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westfield and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westfield Capital Dividend and American Funds Fundamental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Funda and Westfield Capital 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 Westfield Capital Dividend are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Funda has no effect on the direction of Westfield Capital i.e., Westfield Capital and American Funds go up and down completely randomly.
Pair Corralation between Westfield Capital and American Funds
If you would invest (100.00) in Westfield Capital Dividend on January 17, 2024 and sell it today you would earn a total of 100.00 from holding Westfield Capital Dividend or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Westfield Capital Dividend vs. American Funds Fundamental
Performance |
| Timeline |
| Westfield Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Funds Funda |
Westfield Capital and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westfield Capital and American Funds
The main advantage of trading using opposite Westfield Capital and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westfield Capital position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Westfield Capital vs. Ab Bond Inflation | Westfield Capital vs. Atac Inflation Rotation | Westfield Capital vs. Ab Bond Inflation | Westfield Capital vs. Fs Managed Futures |
| American Funds vs. Income Fund Of | American Funds vs. New World Fund | American Funds vs. American Mutual Fund | American Funds vs. American Mutual Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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