Correlation Between Western Asset and Trimax Corp
Can any of the company-specific risk be diversified away by investing in both Western Asset and Trimax Corp 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 Trimax Corp 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 Trimax Corp, you can compare the effects of market volatilities on Western Asset and Trimax Corp 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 Trimax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Trimax Corp.
Diversification Opportunities for Western Asset and Trimax Corp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Trimax is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Global and Trimax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimax Corp 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 Trimax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimax Corp has no effect on the direction of Western Asset i.e., Western Asset and Trimax Corp go up and down completely randomly.
Pair Corralation between Western Asset and Trimax Corp
Considering the 90-day investment horizon Western Asset Global is expected to generate 0.05 times more return on investment than Trimax Corp. However, Western Asset Global is 19.46 times less risky than Trimax Corp. It trades about -0.12 of its potential returns per unit of risk. Trimax Corp is currently generating about -0.2 per unit of risk. If you would invest 1,186 in Western Asset Global on September 12, 2024 and sell it today you would lose (16.00) from holding Western Asset Global or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Asset Global vs. Trimax Corp
Performance |
| Timeline |
| Western Asset Global |
| Trimax Corp |
Western Asset and Trimax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Trimax Corp
The main advantage of trading using opposite Western Asset and Trimax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Trimax Corp 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 Trimax Corp will offset losses from the drop in Trimax Corp'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 |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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