Correlation Between Amg River and Western Asset
Can any of the company-specific risk be diversified away by investing in both Amg River and Western Asset 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 Amg River and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Western Asset Intermediate, you can compare the effects of market volatilities on Amg River and Western Asset 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 Amg River with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Western Asset.
Diversification Opportunities for Amg River and Western Asset
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and Western is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Western Asset Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Interm and Amg River 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 Amg River Road are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Interm has no effect on the direction of Amg River i.e., Amg River and Western Asset go up and down completely randomly.
Pair Corralation between Amg River and Western Asset
Assuming the 90 days horizon Amg River Road is expected to under-perform the Western Asset. In addition to that, Amg River is 3.3 times more volatile than Western Asset Intermediate. It trades about -0.02 of its total potential returns per unit of risk. Western Asset Intermediate is currently generating about 0.19 per unit of volatility. If you would invest 961.00 in Western Asset Intermediate on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Western Asset Intermediate or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Western Asset Intermediate
Performance |
| Timeline |
| Amg River Road |
| Western Asset Interm |
Amg River and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Western Asset
The main advantage of trading using opposite Amg River and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Amg River vs. Vanguard Small Cap Value | Amg River vs. Vanguard Small Cap Value | Amg River vs. Us Small Cap | Amg River vs. Us Targeted Value |
| Western Asset vs. SCOR PK | Western Asset vs. Morningstar Unconstrained Allocation | Western Asset vs. Via Renewables | Western Asset vs. Bondbloxx ETF Trust |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |