Correlation Between Catalyst Enhanced and Western Asset
Can any of the company-specific risk be diversified away by investing in both Catalyst Enhanced 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 Catalyst Enhanced and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Enhanced Income and Western Asset Inflation, you can compare the effects of market volatilities on Catalyst Enhanced 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 Catalyst Enhanced with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Enhanced and Western Asset.
Diversification Opportunities for Catalyst Enhanced and Western Asset
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Catalyst and Western is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Enhanced Income 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 Catalyst Enhanced 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 Catalyst Enhanced Income 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 Catalyst Enhanced i.e., Catalyst Enhanced and Western Asset go up and down completely randomly.
Pair Corralation between Catalyst Enhanced and Western Asset
Assuming the 90 days horizon Catalyst Enhanced Income is expected to under-perform the Western Asset. In addition to that, Catalyst Enhanced is 1.26 times more volatile than Western Asset Inflation. It trades about -0.02 of its total potential returns per unit of risk. Western Asset Inflation is currently generating about 0.2 per unit of volatility. If you would invest 929.00 in Western Asset Inflation on November 27, 2024 and sell it today you would earn a total of 9.00 from holding Western Asset Inflation or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Enhanced Income vs. Western Asset Inflation
Performance |
| Timeline |
| Catalyst Enhanced Income |
| Western Asset Inflation |
Catalyst Enhanced and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Enhanced and Western Asset
The main advantage of trading using opposite Catalyst Enhanced and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Enhanced 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.| Catalyst Enhanced vs. Tfa Alphagen Growth | Catalyst Enhanced vs. Intal High Relative | Catalyst Enhanced vs. Rbb Fund | Catalyst Enhanced vs. Credit Suisse Multialternative |
| Western Asset vs. Prudential High Yield | Western Asset vs. Pace High Yield | Western Asset vs. Gmo High Yield | Western Asset vs. Dunham 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |