Correlation Between Western Asset and Allspring Global
Can any of the company-specific risk be diversified away by investing in both Western Asset and Allspring Global 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 Allspring Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Global and Allspring Global Dividend, you can compare the effects of market volatilities on Western Asset and Allspring Global 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 Allspring Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Allspring Global.
Diversification Opportunities for Western Asset and Allspring Global
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Allspring is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Global and Allspring Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allspring Global Dividend 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 Global are associated (or correlated) with Allspring Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allspring Global Dividend has no effect on the direction of Western Asset i.e., Western Asset and Allspring Global go up and down completely randomly.
Pair Corralation between Western Asset and Allspring Global
Considering the 90-day investment horizon Western Asset Global is expected to under-perform the Allspring Global. But the etf apears to be less risky and, when comparing its historical volatility, Western Asset Global is 1.3 times less risky than Allspring Global. The etf trades about -0.11 of its potential returns per unit of risk. The Allspring Global Dividend is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 486.00 in Allspring Global Dividend on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Allspring Global Dividend or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Global vs. Allspring Global Dividend
Performance |
| Timeline |
| Western Asset Global |
| Allspring Global Dividend |
Western Asset and Allspring Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Allspring Global
The main advantage of trading using opposite Western Asset and Allspring Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Allspring Global 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 Allspring Global will offset losses from the drop in Allspring Global's long position.| Western Asset vs. Western Asset High | Western Asset vs. Western Asset Global | Western Asset vs. European Equity Closed | Western Asset vs. Doubleline Opportunistic Credit |
| Allspring Global vs. Calamos Convertible Opportunities | Allspring Global vs. Calamos Convertible And | Allspring Global vs. Calamos LongShort Equity | Allspring Global vs. Calamos Strategic Total |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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