Correlation Between Pgim Global and Western Asset
Can any of the company-specific risk be diversified away by investing in both Pgim Global 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 Pgim Global and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Global High and Western Asset Global, you can compare the effects of market volatilities on Pgim Global 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 Pgim Global with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Global and Western Asset.
Diversification Opportunities for Pgim Global and Western Asset
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pgim and Western is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Global High and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global and Pgim Global 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 Pgim Global High 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 Global has no effect on the direction of Pgim Global i.e., Pgim Global and Western Asset go up and down completely randomly.
Pair Corralation between Pgim Global and Western Asset
Considering the 90-day investment horizon Pgim Global is expected to generate 1.14 times less return on investment than Western Asset. In addition to that, Pgim Global is 1.46 times more volatile than Western Asset Global. It trades about 0.05 of its total potential returns per unit of risk. Western Asset Global is currently generating about 0.08 per unit of volatility. If you would invest 658.00 in Western Asset Global on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Western Asset Global or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Global High vs. Western Asset Global
Performance |
| Timeline |
| Pgim Global High |
| Western Asset Global |
Pgim Global and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Global and Western Asset
The main advantage of trading using opposite Pgim Global and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Global 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.| Pgim Global vs. MFS Investment Grade | Pgim Global vs. Eaton Vance Municipal | Pgim Global vs. DTF Tax Free | Pgim Global vs. HUMANA INC |
| Western Asset vs. MFS Investment Grade | Western Asset vs. Eaton Vance Municipal | Western Asset vs. DTF Tax Free | Western Asset vs. HUMANA INC |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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