Correlation Between Western Asset and 207597EP6
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By analyzing existing cross correlation between Western Asset Investment and ES 525 15 JAN 53, you can compare the effects of market volatilities on Western Asset and 207597EP6 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 207597EP6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and 207597EP6.
Diversification Opportunities for Western Asset and 207597EP6
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and 207597EP6 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and ES 525 15 JAN 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES 525 15 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 207597EP6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES 525 15 has no effect on the direction of Western Asset i.e., Western Asset and 207597EP6 go up and down completely randomly.
Pair Corralation between Western Asset and 207597EP6
Considering the 90-day investment horizon Western Asset Investment is expected to generate 0.49 times more return on investment than 207597EP6. However, Western Asset Investment is 2.05 times less risky than 207597EP6. It trades about 0.04 of its potential returns per unit of risk. ES 525 15 JAN 53 is currently generating about -0.01 per unit of risk. If you would invest 1,538 in Western Asset Investment on September 2, 2024 and sell it today you would earn a total of 137.00 from holding Western Asset Investment or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 69.35% |
| Values | Daily Returns |
Western Asset Investment vs. ES 525 15 JAN 53
Performance |
| Timeline |
| Western Asset Investment |
| ES 525 15 |
Western Asset and 207597EP6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and 207597EP6
The main advantage of trading using opposite Western Asset and 207597EP6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, 207597EP6 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 207597EP6 will offset losses from the drop in 207597EP6's long position.| Western Asset vs. Visa Class A | Western Asset vs. Diamond Hill Investment | Western Asset vs. Distoken Acquisition | Western Asset vs. Associated Capital Group |
| 207597EP6 vs. ATT Inc | 207597EP6 vs. Home Depot | 207597EP6 vs. Cisco Systems | 207597EP6 vs. Dupont De Nemours |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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