Correlation Between Sit Esg and Western Asset
Can any of the company-specific risk be diversified away by investing in both Sit Esg 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 Sit Esg and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Esg Growth and Western Asset Inflation, you can compare the effects of market volatilities on Sit Esg 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 Sit Esg with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Esg and Western Asset.
Diversification Opportunities for Sit Esg and Western Asset
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sit and Western is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sit Esg Growth and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation and Sit Esg 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 Sit Esg Growth 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 Inflation has no effect on the direction of Sit Esg i.e., Sit Esg and Western Asset go up and down completely randomly.
Pair Corralation between Sit Esg and Western Asset
Assuming the 90 days horizon Sit Esg Growth is expected to generate 2.04 times more return on investment than Western Asset. However, Sit Esg is 2.04 times more volatile than Western Asset Inflation. It trades about 0.1 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.02 per unit of risk. If you would invest 1,599 in Sit Esg Growth on November 28, 2024 and sell it today you would earn a total of 664.00 from holding Sit Esg Growth or generate 41.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Esg Growth vs. Western Asset Inflation
Performance |
| Timeline |
| Sit Esg Growth |
| Western Asset Inflation |
Sit Esg and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Esg and Western Asset
The main advantage of trading using opposite Sit Esg and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Esg 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.| Sit Esg vs. Franklin Moderate Allocation | Sit Esg vs. Pnc Balanced Allocation | Sit Esg vs. Guidemark Large Cap | Sit Esg vs. Enhanced Large Pany |
| Western Asset vs. Qs International Equity | Western Asset vs. Doubleline Emerging Markets | Western Asset vs. Bbh Partner Fund | Western Asset vs. Gmo Global Equity |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |