Correlation Between Pgim High and Western Asset
Can any of the company-specific risk be diversified away by investing in both Pgim High 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 Pgim High and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim High Yield and Western Asset Global, you can compare the effects of market volatilities on Pgim High 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 Pgim High with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim High and Western Asset.
Diversification Opportunities for Pgim High and Western Asset
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pgim and Western is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pgim High Yield and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global and Pgim High 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 Pgim High Yield 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 Global has no effect on the direction of Pgim High i.e., Pgim High and Western Asset go up and down completely randomly.
Pair Corralation between Pgim High and Western Asset
Considering the 90-day investment horizon Pgim High Yield is expected to generate 0.83 times more return on investment than Western Asset. However, Pgim High Yield is 1.21 times less risky than Western Asset. It trades about 0.19 of its potential returns per unit of risk. Western Asset Global is currently generating about 0.11 per unit of risk. If you would invest 996.00 in Pgim High Yield on August 25, 2024 and sell it today you would earn a total of 392.00 from holding Pgim High Yield or generate 39.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Pgim High Yield vs. Western Asset Global
Performance |
| Timeline |
| Pgim High Yield |
| Western Asset Global |
Pgim High and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim High and Western Asset
The main advantage of trading using opposite Pgim High and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim High 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.| Pgim High vs. Pimco Dynamic Income | Pgim High vs. Pimco Corporate Income | Pgim High vs. Cornerstone Strategic Value | Pgim High vs. Cornerstone Strategic Return |
| Western Asset vs. Western Asset High | Western Asset vs. BNY Mellon High | Western Asset vs. Allspring Income Opportunities | Western Asset vs. Allianzgi Convertible Income |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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