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 Total, 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
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bbh and WESTERN is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Western Asset Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Total 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 Total 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 1.28 times more return on investment than Western Asset. However, Bbh Intermediate is 1.28 times more volatile than Western Asset Total. It trades about 0.13 of its potential returns per unit of risk. Western Asset Total is currently generating about 0.08 per unit of risk. If you would invest 1,026 in Bbh Intermediate Municipal on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Bbh Intermediate Municipal or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Western Asset Total
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Western Asset Total |
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. Absolute Convertible Arbitrage | Bbh Intermediate vs. Calamos Dynamic Convertible | Bbh Intermediate vs. Rationalpier 88 Convertible | Bbh Intermediate vs. Gabelli Convertible And |
| Western Asset vs. Heartland Value Plus | Western Asset vs. Hennessy Nerstone Mid | Western Asset vs. Victory Rs Partners | Western Asset vs. Applied Finance Explorer |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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