Correlation Between Asg Managed and Western Asset
Can any of the company-specific risk be diversified away by investing in both Asg Managed 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 Asg Managed and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Managed Futures and Western Asset Diversified, you can compare the effects of market volatilities on Asg Managed 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 Asg Managed with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Western Asset.
Diversification Opportunities for Asg Managed and Western Asset
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asg and Western is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified and Asg Managed 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 Asg Managed Futures 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 Diversified has no effect on the direction of Asg Managed i.e., Asg Managed and Western Asset go up and down completely randomly.
Pair Corralation between Asg Managed and Western Asset
Assuming the 90 days horizon Asg Managed Futures is expected to under-perform the Western Asset. In addition to that, Asg Managed is 1.9 times more volatile than Western Asset Diversified. It trades about -0.03 of its total potential returns per unit of risk. Western Asset Diversified is currently generating about 0.02 per unit of volatility. If you would invest 1,507 in Western Asset Diversified on August 31, 2024 and sell it today you would earn a total of 39.00 from holding Western Asset Diversified or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Asg Managed Futures vs. Western Asset Diversified
Performance |
| Timeline |
| Asg Managed Futures |
| Western Asset Diversified |
Asg Managed and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and Western Asset
The main advantage of trading using opposite Asg Managed and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed 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.| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. American Beacon Ahl |
| Western Asset vs. Davis Financial Fund | Western Asset vs. Prudential Jennison Financial | Western Asset vs. Mesirow Financial Small | Western Asset vs. Fidelity Advisor Financial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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