Correlation Between Western Asset and Blackrock
Can any of the company-specific risk be diversified away by investing in both Western Asset and Blackrock 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 Western Asset and Blackrock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Government and Blackrock Government Bond, you can compare the effects of market volatilities on Western Asset and Blackrock 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 Blackrock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Blackrock.
Diversification Opportunities for Western Asset and Blackrock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Blackrock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Government and Blackrock Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Government Bond 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 Government are associated (or correlated) with Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Government Bond has no effect on the direction of Western Asset i.e., Western Asset and Blackrock go up and down completely randomly.
Pair Corralation between Western Asset and Blackrock
If you would invest 904.00 in Blackrock Government Bond on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Blackrock Government Bond or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Asset Government vs. Blackrock Government Bond
Performance |
| Timeline |
| Western Asset Government |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackrock Government Bond |
Western Asset and Blackrock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Blackrock
The main advantage of trading using opposite Western Asset and Blackrock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Blackrock 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 Blackrock will offset losses from the drop in Blackrock's long position.| Western Asset vs. Blackrock Science Technology | Western Asset vs. Global Technology Portfolio | Western Asset vs. Columbia Global Technology | Western Asset vs. Invesco Technology Fund |
| Blackrock vs. Us Government Securities | Blackrock vs. Us Government Securities | Blackrock vs. American Funds Government | Blackrock vs. Us Government Securities |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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