Correlation Between Eagle Mlp and Western Asset
Can any of the company-specific risk be diversified away by investing in both Eagle Mlp 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 Eagle Mlp and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mlp Strategy and Western Asset High, you can compare the effects of market volatilities on Eagle Mlp 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 Eagle Mlp with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Western Asset.
Diversification Opportunities for Eagle Mlp and Western Asset
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Western is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Eagle Mlp 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 Eagle Mlp Strategy 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 High has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Western Asset go up and down completely randomly.
Pair Corralation between Eagle Mlp and Western Asset
Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 5.46 times more return on investment than Western Asset. However, Eagle Mlp is 5.46 times more volatile than Western Asset High. It trades about 0.7 of its potential returns per unit of risk. Western Asset High is currently generating about 0.16 per unit of risk. If you would invest 976.00 in Eagle Mlp Strategy on August 28, 2024 and sell it today you would earn a total of 144.00 from holding Eagle Mlp Strategy or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mlp Strategy vs. Western Asset High
Performance |
| Timeline |
| Eagle Mlp Strategy |
| Western Asset High |
Eagle Mlp and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mlp and Western Asset
The main advantage of trading using opposite Eagle Mlp and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp 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.| Eagle Mlp vs. Usaa Mutual Funds | Eagle Mlp vs. Transamerica Funds | Eagle Mlp vs. T Rowe Price | Eagle Mlp vs. Legg Mason Partners |
| Western Asset vs. Ab Value Fund | Western Asset vs. Aam Select Income | Western Asset vs. Iaadx | Western Asset vs. Arrow Managed Futures |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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