Correlation Between Ep Emerging and Western Asset
Can any of the company-specific risk be diversified away by investing in both Ep Emerging 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 Ep Emerging and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ep Emerging Markets and Western Asset Adjustable, you can compare the effects of market volatilities on Ep Emerging 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 Ep Emerging with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Western Asset.
Diversification Opportunities for Ep Emerging and Western Asset
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between EPASX and Western is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Western Asset Adjustable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Adjustable and Ep Emerging 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 Ep Emerging Markets 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 Adjustable has no effect on the direction of Ep Emerging i.e., Ep Emerging and Western Asset go up and down completely randomly.
Pair Corralation between Ep Emerging and Western Asset
Assuming the 90 days horizon Ep Emerging Markets is expected to generate 14.35 times more return on investment than Western Asset. However, Ep Emerging is 14.35 times more volatile than Western Asset Adjustable. It trades about 0.02 of its potential returns per unit of risk. Western Asset Adjustable is currently generating about 0.24 per unit of risk. If you would invest 981.00 in Ep Emerging Markets on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Ep Emerging Markets or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ep Emerging Markets vs. Western Asset Adjustable
Performance |
| Timeline |
| Ep Emerging Markets |
| Western Asset Adjustable |
Ep Emerging and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Western Asset
The main advantage of trading using opposite Ep Emerging and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging 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.| Ep Emerging vs. Putnam Convertible Incm Gwth | Ep Emerging vs. Calamos Dynamic Convertible | Ep Emerging vs. Virtus Convertible | Ep Emerging vs. Columbia Vertible Securities |
| Western Asset vs. Short Term Fund A | Western Asset vs. Western Asset Intermediate Term | Western Asset vs. T Rowe Price | Western Asset vs. Aquagold International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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