Correlation Between Oshaughnessy Market and Western Asset
Can any of the company-specific risk be diversified away by investing in both Oshaughnessy Market 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 Oshaughnessy Market and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshaughnessy Market Leaders and Western Asset Total, you can compare the effects of market volatilities on Oshaughnessy Market 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 Oshaughnessy Market with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshaughnessy Market and Western Asset.
Diversification Opportunities for Oshaughnessy Market and Western Asset
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oshaughnessy and Western is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Oshaughnessy Market Leaders 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 Oshaughnessy Market 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 Oshaughnessy Market Leaders 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 Oshaughnessy Market i.e., Oshaughnessy Market and Western Asset go up and down completely randomly.
Pair Corralation between Oshaughnessy Market and Western Asset
Assuming the 90 days horizon Oshaughnessy Market Leaders is expected to generate 3.57 times more return on investment than Western Asset. However, Oshaughnessy Market is 3.57 times more volatile than Western Asset Total. It trades about 0.04 of its potential returns per unit of risk. Western Asset Total is currently generating about 0.04 per unit of risk. If you would invest 1,603 in Oshaughnessy Market Leaders on October 12, 2024 and sell it today you would earn a total of 345.00 from holding Oshaughnessy Market Leaders or generate 21.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshaughnessy Market Leaders vs. Western Asset Total
Performance |
| Timeline |
| Oshaughnessy Market |
| Western Asset Total |
Oshaughnessy Market and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshaughnessy Market and Western Asset
The main advantage of trading using opposite Oshaughnessy Market and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshaughnessy Market 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.| Oshaughnessy Market vs. Fmasx | Oshaughnessy Market vs. Ab New York | Oshaughnessy Market vs. Small Pany Growth | Oshaughnessy Market vs. Arrow Managed Futures |
| Western Asset vs. Franklin Emerging Market | Western Asset vs. Oshaughnessy Market Leaders | Western Asset vs. Dws Emerging Markets | Western Asset vs. Origin Emerging Markets |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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