Correlation Between Bbh Partner and Western Asset
Can any of the company-specific risk be diversified away by investing in both Bbh Partner 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 Bbh Partner and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Partner Fund and Western Asset Inflation, you can compare the effects of market volatilities on Bbh Partner 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 Bbh Partner with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Partner and Western Asset.
Diversification Opportunities for Bbh Partner and Western Asset
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bbh and Western is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Partner Fund and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation and Bbh Partner 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 Bbh Partner 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 Inflation has no effect on the direction of Bbh Partner i.e., Bbh Partner and Western Asset go up and down completely randomly.
Pair Corralation between Bbh Partner and Western Asset
Assuming the 90 days horizon Bbh Partner Fund is expected to generate 2.23 times more return on investment than Western Asset. However, Bbh Partner is 2.23 times more volatile than Western Asset Inflation. It trades about 0.09 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.08 per unit of risk. If you would invest 1,389 in Bbh Partner Fund on September 4, 2024 and sell it today you would earn a total of 342.00 from holding Bbh Partner Fund or generate 24.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Bbh Partner Fund vs. Western Asset Inflation
Performance |
| Timeline |
| Bbh Partner Fund |
| Western Asset Inflation |
Bbh Partner and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Partner and Western Asset
The main advantage of trading using opposite Bbh Partner and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Partner 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.| Bbh Partner vs. Bbh Limited Duration | Bbh Partner vs. Clarkston Partners Fund | Bbh Partner vs. Akre Focus Fund | Bbh Partner vs. International Fund International |
| Western Asset vs. Ab Small Cap | Western Asset vs. Commonwealth Global Fund | Western Asset vs. Growth Strategy Fund | Western Asset vs. T Rowe Price |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |