Correlation Between Western Asset and Winmill Co
Can any of the company-specific risk be diversified away by investing in both Western Asset and Winmill Co 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 Winmill Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Municipal and Winmill Co Incorporated, you can compare the effects of market volatilities on Western Asset and Winmill Co 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 Winmill Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Winmill Co.
Diversification Opportunities for Western Asset and Winmill Co
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Winmill is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Winmill Co Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmill Co 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 Municipal are associated (or correlated) with Winmill Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmill Co has no effect on the direction of Western Asset i.e., Western Asset and Winmill Co go up and down completely randomly.
Pair Corralation between Western Asset and Winmill Co
If you would invest 694.00 in Western Asset Municipal on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Western Asset Municipal or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Western Asset Municipal vs. Winmill Co Incorporated
Performance |
| Timeline |
| Western Asset Municipal |
| Winmill Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Winmill Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Winmill Co
The main advantage of trading using opposite Western Asset and Winmill Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Winmill Co 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 Winmill Co will offset losses from the drop in Winmill Co's long position.| Western Asset vs. Western Asset Managed | Western Asset vs. Blackrock Muniholdings Quality | Western Asset vs. DTF Tax Free | Western Asset vs. John Hancock Income |
| Winmill Co vs. Virtus Dividend Interest | Winmill Co vs. Central Securities | Winmill Co vs. Aberdeen International | Winmill Co vs. Bimini Capital Management |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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