Correlation Between Ge S and Western Asset
Can any of the company-specific risk be diversified away by investing in both Ge S 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 Ge S and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ge S Us and Western Asset Total, you can compare the effects of market volatilities on Ge S 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 Ge S with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ge S and Western Asset.
Diversification Opportunities for Ge S and Western Asset
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GESSX and Western is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ge S Us and Western Asset Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Total and Ge S 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 Ge S Us 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 Total has no effect on the direction of Ge S i.e., Ge S and Western Asset go up and down completely randomly.
Pair Corralation between Ge S and Western Asset
If you would invest 902.00 in Western Asset Total on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Western Asset Total or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ge S Us vs. Western Asset Total
Performance |
| Timeline |
| Ge S Us |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Western Asset Total |
Ge S and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ge S and Western Asset
The main advantage of trading using opposite Ge S and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ge S 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.| Ge S vs. Gabelli Convertible And | Ge S vs. Allianzgi Convertible Income | Ge S vs. Columbia Vertible Securities | Ge S vs. Putnam Convertible Incm Gwth |
| Western Asset vs. Pro Blend Moderate Term | Western Asset vs. Target Retirement 2040 | Western Asset vs. Franklin Lifesmart Retirement | Western Asset vs. Fidelity Managed Retirement |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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