Correlation Between Old Westbury and Calvert Us

Can any of the company-specific risk be diversified away by investing in both Old Westbury and Calvert Us 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 Calvert Us 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 Calvert Large Cap, you can compare the effects of market volatilities on Old Westbury and Calvert Us 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 Calvert Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Calvert Us.

Diversification Opportunities for Old Westbury and Calvert Us

0.75

Correlation Coefficient

Old Westbury  Calvert Us

Poor diversification

The 3 months correlation between Old and Calvert is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Fixed and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap 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 Calvert Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Old Westbury i.e., Old Westbury and Calvert Us go up and down completely randomly.

Pair Corralation between Old Westbury and Calvert Us

Assuming the 90 days horizon Old Westbury is expected to generate 3.46 times less return on investment than Calvert Us. But when comparing it to its historical volatility, Old Westbury Fixed is 3.43 times less risky than Calvert Us. It trades about 0.17 of its potential returns per unit of risk. Calvert Large Cap is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  3,269  in Calvert Large Cap on May 27, 2025 and sell it today you would earn a total of  262.00  from holding Calvert Large Cap or generate 8.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Old Westbury Fixed  vs.  Calvert Large Cap

Old Westbury Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Old Westbury Fixed are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. 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.

Calvert Large Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Us may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Old Westbury and Calvert Us

The main advantage of trading using opposite Old Westbury and Calvert Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Calvert Us 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 Calvert Us will offset losses from the drop in Calvert Us' long position.

The idea behind Old Westbury Fixed and Calvert Large Cap 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.