Correlation Between Western Asset and 63906YAF5
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By analyzing existing cross correlation between Western Asset Investment and NWG 5903249 22 MAR 25, you can compare the effects of market volatilities on Western Asset and 63906YAF5 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 63906YAF5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and 63906YAF5.
Diversification Opportunities for Western Asset and 63906YAF5
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and 63906YAF5 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and NWG 5903249 22 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NWG 5903249 22 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 63906YAF5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NWG 5903249 22 has no effect on the direction of Western Asset i.e., Western Asset and 63906YAF5 go up and down completely randomly.
Pair Corralation between Western Asset and 63906YAF5
Considering the 90-day investment horizon Western Asset Investment is expected to generate 2.08 times more return on investment than 63906YAF5. However, Western Asset is 2.08 times more volatile than NWG 5903249 22 MAR 25. It trades about 0.03 of its potential returns per unit of risk. NWG 5903249 22 MAR 25 is currently generating about 0.04 per unit of risk. If you would invest 1,518 in Western Asset Investment on September 4, 2024 and sell it today you would earn a total of 156.00 from holding Western Asset Investment or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 14.75% |
| Values | Daily Returns |
Western Asset Investment vs. NWG 5903249 22 MAR 25
Performance |
| Timeline |
| Western Asset Investment |
| NWG 5903249 22 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and 63906YAF5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and 63906YAF5
The main advantage of trading using opposite Western Asset and 63906YAF5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, 63906YAF5 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 63906YAF5 will offset losses from the drop in 63906YAF5'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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