Correlation Between Catholic Values and Western Asset
Can any of the company-specific risk be diversified away by investing in both Catholic Values 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 Catholic Values and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catholic Values Fixed and Western Asset Inflation, you can compare the effects of market volatilities on Catholic Values 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 Catholic Values with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catholic Values and Western Asset.
Diversification Opportunities for Catholic Values and Western Asset
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catholic and Western is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Catholic Values Fixed 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 Catholic Values 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 Catholic Values Fixed 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 Catholic Values i.e., Catholic Values and Western Asset go up and down completely randomly.
Pair Corralation between Catholic Values and Western Asset
Assuming the 90 days horizon Catholic Values Fixed is expected to generate 1.14 times more return on investment than Western Asset. However, Catholic Values is 1.14 times more volatile than Western Asset Inflation. It trades about 0.12 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.1 per unit of risk. If you would invest 863.00 in Catholic Values Fixed on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Catholic Values Fixed or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catholic Values Fixed vs. Western Asset Inflation
Performance |
| Timeline |
| Catholic Values Fixed |
| Western Asset Inflation |
Catholic Values and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catholic Values and Western Asset
The main advantage of trading using opposite Catholic Values and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catholic Values 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.| Catholic Values vs. T Rowe Price | Catholic Values vs. T Rowe Price | Catholic Values vs. Jp Morgan Smartretirement | Catholic Values vs. T Rowe Price |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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