Correlation Between Western Asset and Toshiba
Can any of the company-specific risk be diversified away by investing in both Western Asset and Toshiba 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 Toshiba 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 Toshiba, you can compare the effects of market volatilities on Western Asset and Toshiba 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 Toshiba. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Toshiba.
Diversification Opportunities for Western Asset and Toshiba
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Toshiba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and Toshiba in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toshiba 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 Toshiba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toshiba has no effect on the direction of Western Asset i.e., Western Asset and Toshiba go up and down completely randomly.
Pair Corralation between Western Asset and Toshiba
If you would invest 1,642 in Western Asset Investment on November 27, 2024 and sell it today you would earn a total of 36.00 from holding Western Asset Investment or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Asset Investment vs. Toshiba
Performance |
| Timeline |
| Western Asset Investment |
| Toshiba |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Western Asset and Toshiba Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Toshiba
The main advantage of trading using opposite Western Asset and Toshiba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Toshiba 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 Toshiba will offset losses from the drop in Toshiba'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 |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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