Correlation Between Western Asset and TOTAL
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By analyzing existing cross correlation between Western Asset Investment and TOTAL CAPITAL INTERNATIONAL, you can compare the effects of market volatilities on Western Asset and TOTAL 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 TOTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and TOTAL.
Diversification Opportunities for Western Asset and TOTAL
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and TOTAL is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and TOTAL CAPITAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL CAPITAL INTERN 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 TOTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL CAPITAL INTERN has no effect on the direction of Western Asset i.e., Western Asset and TOTAL go up and down completely randomly.
Pair Corralation between Western Asset and TOTAL
Considering the 90-day investment horizon Western Asset is expected to generate 284.24 times less return on investment than TOTAL. But when comparing it to its historical volatility, Western Asset Investment is 103.09 times less risky than TOTAL. It trades about 0.03 of its potential returns per unit of risk. TOTAL CAPITAL INTERNATIONAL is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,657 in TOTAL CAPITAL INTERNATIONAL on August 30, 2024 and sell it today you would lose (367.00) from holding TOTAL CAPITAL INTERNATIONAL or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Western Asset Investment vs. TOTAL CAPITAL INTERNATIONAL
Performance |
| Timeline |
| Western Asset Investment |
| TOTAL CAPITAL INTERN |
Western Asset and TOTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and TOTAL
The main advantage of trading using opposite Western Asset and TOTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, TOTAL 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 TOTAL will offset losses from the drop in TOTAL's long position.| Western Asset vs. ClimateRock Class A | Western Asset vs. CF Acquisition VII | Western Asset vs. DP Cap Acquisition |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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