Correlation Between Fisher Investments and Western Asset
Can any of the company-specific risk be diversified away by investing in both Fisher Investments 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 Fisher Investments and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Small Cap and Western Asset Total, you can compare the effects of market volatilities on Fisher Investments 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 Fisher Investments with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Western Asset.
Diversification Opportunities for Fisher Investments and Western Asset
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fisher and Western is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Western Asset Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Total and Fisher Investments 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 Fisher Small Cap 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 Total has no effect on the direction of Fisher Investments i.e., Fisher Investments and Western Asset go up and down completely randomly.
Pair Corralation between Fisher Investments and Western Asset
Assuming the 90 days horizon Fisher Small Cap is expected to generate 7.57 times more return on investment than Western Asset. However, Fisher Investments is 7.57 times more volatile than Western Asset Total. It trades about 0.19 of its potential returns per unit of risk. Western Asset Total is currently generating about -0.01 per unit of risk. If you would invest 1,218 in Fisher Small Cap on September 3, 2024 and sell it today you would earn a total of 135.00 from holding Fisher Small Cap or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Small Cap vs. Western Asset Total
Performance |
| Timeline |
| Fisher Investments |
| Western Asset Total |
Fisher Investments and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and Western Asset
The main advantage of trading using opposite Fisher Investments and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments 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.| Fisher Investments vs. The Hartford Midcap | Fisher Investments vs. Mfs Emerging Markets | Fisher Investments vs. Wells Fargo Special | Fisher Investments vs. Washington Mutual Investors |
| Western Asset vs. Ab Small Cap | Western Asset vs. Oklahoma College Savings | Western Asset vs. Fisher Small Cap | Western Asset vs. Rbb Fund |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |