Correlation Between Western Asset and CP ALL
Can any of the company-specific risk be diversified away by investing in both Western Asset and CP ALL 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 CP ALL 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 CP ALL Public, you can compare the effects of market volatilities on Western Asset and CP ALL 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 CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and CP ALL.
Diversification Opportunities for Western Asset and CP ALL
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and CVPBF is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public 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 CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Western Asset i.e., Western Asset and CP ALL go up and down completely randomly.
Pair Corralation between Western Asset and CP ALL
If you would invest 206.00 in CP ALL Public on September 3, 2024 and sell it today you would earn a total of 0.00 from holding CP ALL Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Investment vs. CP ALL Public
Performance |
| Timeline |
| Western Asset Investment |
| CP ALL Public |
Western Asset and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and CP ALL
The main advantage of trading using opposite Western Asset and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL's long position.| Western Asset vs. Pioneer Floating Rate | Western Asset vs. The Gabelli Equity | Western Asset vs. Pioneer Municipal High | Western Asset vs. Nuveen Global High |
| CP ALL vs. Western Asset Investment | CP ALL vs. Analog Devices | CP ALL vs. Arrow Electronics | CP ALL vs. MGIC Investment Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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