Correlation Between Western Asset and Blackstone Gso
Can any of the company-specific risk be diversified away by investing in both Western Asset and Blackstone Gso 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 Western Asset and Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Mortgage and Blackstone Gso Long, you can compare the effects of market volatilities on Western Asset and Blackstone Gso 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 Western Asset with a short position of Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Blackstone Gso.
Diversification Opportunities for Western Asset and Blackstone Gso
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Blackstone is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Mortgage and Blackstone Gso Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Long and Western Asset 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 Western Asset Mortgage are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Long has no effect on the direction of Western Asset i.e., Western Asset and Blackstone Gso go up and down completely randomly.
Pair Corralation between Western Asset and Blackstone Gso
Considering the 90-day investment horizon Western Asset Mortgage is expected to generate 1.25 times more return on investment than Blackstone Gso. However, Western Asset is 1.25 times more volatile than Blackstone Gso Long. It trades about 0.12 of its potential returns per unit of risk. Blackstone Gso Long is currently generating about 0.14 per unit of risk. If you would invest 841.00 in Western Asset Mortgage on August 24, 2024 and sell it today you would earn a total of 359.00 from holding Western Asset Mortgage or generate 42.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Mortgage vs. Blackstone Gso Long
Performance |
| Timeline |
| Western Asset Mortgage |
| Blackstone Gso Long |
Western Asset and Blackstone Gso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Blackstone Gso
The main advantage of trading using opposite Western Asset and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Blackstone Gso 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 Blackstone Gso will offset losses from the drop in Blackstone Gso's long position.| Western Asset vs. Western Asset High | Western Asset vs. Pioneer Municipal High | Western Asset vs. Doubleline Income Solutions | Western Asset vs. Doubleline Yield Opportunities |
| Blackstone Gso vs. MFS Investment Grade | Blackstone Gso vs. Eaton Vance National | Blackstone Gso vs. Blackrock Muniyield Quality | Blackstone Gso vs. Munivest 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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