Correlation Between Bbh Intermediate and Western Asset
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Intermediate 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 Intermediate Municipal and Western Asset E, you can compare the effects of market volatilities on Bbh Intermediate 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 Intermediate with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Western Asset.
Diversification Opportunities for Bbh Intermediate and Western Asset
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bbh and Western is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Western Asset E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset E and Bbh Intermediate 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 Intermediate Municipal 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 E has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Western Asset go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Western Asset
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.36 times more return on investment than Western Asset. However, Bbh Intermediate Municipal is 2.8 times less risky than Western Asset. It trades about 0.34 of its potential returns per unit of risk. Western Asset E is currently generating about 0.09 per unit of risk. If you would invest 1,029 in Bbh Intermediate Municipal on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Bbh Intermediate Municipal or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Western Asset E
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Western Asset E |
Bbh Intermediate and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Western Asset
The main advantage of trading using opposite Bbh Intermediate and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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 Intermediate vs. Dreyfus Technology Growth | Bbh Intermediate vs. Red Oak Technology | Bbh Intermediate vs. Biotechnology Ultrasector Profund | Bbh Intermediate vs. Towpath Technology |
| Western Asset vs. Metropolitan West Total | Western Asset vs. SCOR PK | Western Asset vs. Morningstar Unconstrained Allocation | Western Asset vs. Thrivent High Yield |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |