Correlation Between Value Fund and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Value Fund and Teton Westwood 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 Value Fund and Teton Westwood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Fund Investor and Teton Westwood Balanced, you can compare the effects of market volatilities on Value Fund and Teton Westwood 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 Value Fund with a short position of Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Fund and Teton Westwood.
Diversification Opportunities for Value Fund and Teton Westwood
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Value and Teton is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Value Fund Investor and Teton Westwood Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Balanced and Value Fund 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 Value Fund Investor are associated (or correlated) with Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Balanced has no effect on the direction of Value Fund i.e., Value Fund and Teton Westwood go up and down completely randomly.
Pair Corralation between Value Fund and Teton Westwood
Assuming the 90 days horizon Value Fund is expected to generate 3.76 times less return on investment than Teton Westwood. In addition to that, Value Fund is 1.32 times more volatile than Teton Westwood Balanced. It trades about 0.01 of its total potential returns per unit of risk. Teton Westwood Balanced is currently generating about 0.05 per unit of volatility. If you would invest 1,018 in Teton Westwood Balanced on March 14, 2024 and sell it today you would earn a total of 14.00 from holding Teton Westwood Balanced or generate 1.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Value Fund Investor vs. Teton Westwood Balanced
Performance |
Timeline |
Value Fund Investor |
Teton Westwood Balanced |
Value Fund and Teton Westwood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Value Fund and Teton Westwood
The main advantage of trading using opposite Value Fund and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Fund position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.Value Fund vs. Equity Growth Fund | Value Fund vs. Income Growth Fund | Value Fund vs. Diversified Bond Fund | Value Fund vs. Select Fund Investor |
Teton Westwood vs. Teton Westwood Equity | Teton Westwood vs. Pax Balanced Fund | Teton Westwood vs. Value Line Income | Teton Westwood vs. Teton Westwood Small |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |