Correlation Between Western Asset and Cohen Circle
Can any of the company-specific risk be diversified away by investing in both Western Asset and Cohen Circle 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 Cohen Circle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Investment and Cohen Circle Acquisition, you can compare the effects of market volatilities on Western Asset and Cohen Circle 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 Cohen Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Cohen Circle.
Diversification Opportunities for Western Asset and Cohen Circle
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Cohen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and Cohen Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Circle Acquisition 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 Investment are associated (or correlated) with Cohen Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Circle Acquisition has no effect on the direction of Western Asset i.e., Western Asset and Cohen Circle go up and down completely randomly.
Pair Corralation between Western Asset and Cohen Circle
If you would invest 1,001 in Cohen Circle Acquisition on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Cohen Circle Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Investment vs. Cohen Circle Acquisition
Performance |
| Timeline |
| Western Asset Investment |
| Cohen Circle Acquisition |
Western Asset and Cohen Circle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Cohen Circle
The main advantage of trading using opposite Western Asset and Cohen Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Cohen Circle 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 Cohen Circle will offset losses from the drop in Cohen Circle's long position.| Western Asset vs. HUMANA INC | Western Asset vs. SCOR PK | Western Asset vs. Aquagold International | Western Asset vs. Thrivent High Yield |
| Cohen Circle vs. Sphere Entertainment Co | Cohen Circle vs. Western Asset Investment | Cohen Circle vs. MGIC Investment Corp | Cohen Circle vs. Link Real Estate |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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