Correlation Between Auer Growth and Western Asset
Can any of the company-specific risk be diversified away by investing in both Auer Growth 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 Auer Growth and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Western Asset Porate, you can compare the effects of market volatilities on Auer Growth 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 Auer Growth with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Western Asset.
Diversification Opportunities for Auer Growth and Western Asset
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auer and Western is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Western Asset Porate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Porate and Auer Growth 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 Auer Growth Fund 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 Porate has no effect on the direction of Auer Growth i.e., Auer Growth and Western Asset go up and down completely randomly.
Pair Corralation between Auer Growth and Western Asset
Assuming the 90 days horizon Auer Growth Fund is expected to generate 2.61 times more return on investment than Western Asset. However, Auer Growth is 2.61 times more volatile than Western Asset Porate. It trades about 0.05 of its potential returns per unit of risk. Western Asset Porate is currently generating about 0.04 per unit of risk. If you would invest 1,373 in Auer Growth Fund on September 3, 2024 and sell it today you would earn a total of 395.00 from holding Auer Growth Fund or generate 28.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Western Asset Porate
Performance |
| Timeline |
| Auer Growth Fund |
| Western Asset Porate |
Auer Growth and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Western Asset
The main advantage of trading using opposite Auer Growth and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth 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.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Western Asset vs. Auer Growth Fund | Western Asset vs. Nasdaq 100 Fund Class | Western Asset vs. Vanguard Windsor Fund | Western Asset vs. Ab Value 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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