Correlation Between Helios Fairfax and Western Asset
Can any of the company-specific risk be diversified away by investing in both Helios Fairfax 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 Helios Fairfax and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Fairfax Partners and Western Asset High, you can compare the effects of market volatilities on Helios Fairfax 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 Helios Fairfax with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and Western Asset.
Diversification Opportunities for Helios Fairfax and Western Asset
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Helios and Western is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners 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 Helios Fairfax 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 Helios Fairfax Partners 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 Helios Fairfax i.e., Helios Fairfax and Western Asset go up and down completely randomly.
Pair Corralation between Helios Fairfax and Western Asset
Assuming the 90 days horizon Helios Fairfax Partners is expected to under-perform the Western Asset. In addition to that, Helios Fairfax is 2.56 times more volatile than Western Asset High. It trades about -0.05 of its total potential returns per unit of risk. Western Asset High is currently generating about 0.09 per unit of volatility. If you would invest 1,207 in Western Asset High on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Western Asset High or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Helios Fairfax Partners vs. Western Asset High
Performance |
| Timeline |
| Helios Fairfax Partners |
| Western Asset High |
Helios Fairfax and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Fairfax and Western Asset
The main advantage of trading using opposite Helios Fairfax and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax 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.| Helios Fairfax vs. Nuveen Global High | Helios Fairfax vs. New America High | Helios Fairfax vs. Brookfield Business Corp | Helios Fairfax vs. Elysee Development Corp |
| Western Asset vs. Brookfield Real Assets | Western Asset vs. Guggenheim Strategic Opportunities | Western Asset vs. Cornerstone Strategic Return | Western Asset vs. Cornerstone Strategic Value |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |