Correlation Between Cbre Clarion and Western Asset
Can any of the company-specific risk be diversified away by investing in both Cbre Clarion and Western Asset 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 Cbre Clarion and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cbre Clarion Global and Western Asset High, you can compare the effects of market volatilities on Cbre Clarion and Western Asset 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 Cbre Clarion with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cbre Clarion and Western Asset.
Diversification Opportunities for Cbre Clarion and Western Asset
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cbre and Western is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cbre Clarion Global and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Cbre Clarion 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 Cbre Clarion Global are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Cbre Clarion i.e., Cbre Clarion and Western Asset go up and down completely randomly.
Pair Corralation between Cbre Clarion and Western Asset
Considering the 90-day investment horizon Cbre Clarion Global is expected to generate 2.44 times more return on investment than Western Asset. However, Cbre Clarion is 2.44 times more volatile than Western Asset High. It trades about 0.06 of its potential returns per unit of risk. Western Asset High is currently generating about 0.1 per unit of risk. If you would invest 428.00 in Cbre Clarion Global on September 1, 2024 and sell it today you would earn a total of 152.00 from holding Cbre Clarion Global or generate 35.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cbre Clarion Global vs. Western Asset High
Performance |
| Timeline |
| Cbre Clarion Global |
| Western Asset High |
Cbre Clarion and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cbre Clarion and Western Asset
The main advantage of trading using opposite Cbre Clarion and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cbre Clarion position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Cbre Clarion vs. Aberdeen Global Dynamic | Cbre Clarion vs. Blackrock Resources Commodities | Cbre Clarion vs. Aberdeen Total Dynamic | Cbre Clarion vs. Blackrock Enhanced Equity |
| Western Asset vs. Doubleline Yield Opportunities | Western Asset vs. Highland Floating Rate | Western Asset vs. Doubleline Opportunistic Credit | Western Asset vs. Western Asset Emerging |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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