Correlation Between Western Asset and UNITED
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Asset Investment and UNITED PARCEL SVC, you can compare the effects of market volatilities on Western Asset and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and UNITED.
Diversification Opportunities for Western Asset and UNITED
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and UNITED is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and UNITED PARCEL SVC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SVC 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SVC has no effect on the direction of Western Asset i.e., Western Asset and UNITED go up and down completely randomly.
Pair Corralation between Western Asset and UNITED
Considering the 90-day investment horizon Western Asset Investment is expected to generate 1.15 times more return on investment than UNITED. However, Western Asset is 1.15 times more volatile than UNITED PARCEL SVC. It trades about -0.01 of its potential returns per unit of risk. UNITED PARCEL SVC is currently generating about -0.17 per unit of risk. If you would invest 1,675 in Western Asset Investment on August 31, 2024 and sell it today you would lose (2.00) from holding Western Asset Investment or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Asset Investment vs. UNITED PARCEL SVC
Performance |
| Timeline |
| Western Asset Investment |
| UNITED PARCEL SVC |
Western Asset and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and UNITED
The main advantage of trading using opposite Western Asset and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.| Western Asset vs. HUMANA INC | Western Asset vs. SCOR PK | Western Asset vs. Aquagold International | Western Asset vs. Thrivent High Yield |
| UNITED vs. Pinterest | UNITED vs. Western Asset Investment | UNITED vs. PennantPark Investment | UNITED vs. Crombie Real Estate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |