Correlation Between Oakhurst Fixed and Western Asset
Can any of the company-specific risk be diversified away by investing in both Oakhurst Fixed 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 Oakhurst Fixed and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakhurst Fixed Income and Western Asset Diversified, you can compare the effects of market volatilities on Oakhurst Fixed 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 Oakhurst Fixed with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakhurst Fixed and Western Asset.
Diversification Opportunities for Oakhurst Fixed and Western Asset
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oakhurst and Western is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Oakhurst Fixed Income and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified and Oakhurst Fixed 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 Oakhurst Fixed Income 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 Diversified has no effect on the direction of Oakhurst Fixed i.e., Oakhurst Fixed and Western Asset go up and down completely randomly.
Pair Corralation between Oakhurst Fixed and Western Asset
Assuming the 90 days horizon Oakhurst Fixed Income is expected to generate 1.08 times more return on investment than Western Asset. However, Oakhurst Fixed is 1.08 times more volatile than Western Asset Diversified. It trades about 0.15 of its potential returns per unit of risk. Western Asset Diversified is currently generating about 0.08 per unit of risk. If you would invest 875.00 in Oakhurst Fixed Income on September 5, 2024 and sell it today you would earn a total of 9.00 from holding Oakhurst Fixed Income or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oakhurst Fixed Income vs. Western Asset Diversified
Performance |
| Timeline |
| Oakhurst Fixed Income |
| Western Asset Diversified |
Oakhurst Fixed and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakhurst Fixed and Western Asset
The main advantage of trading using opposite Oakhurst Fixed and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakhurst Fixed 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.| Oakhurst Fixed vs. Western Asset Diversified | Oakhurst Fixed vs. Calvert Conservative Allocation | Oakhurst Fixed vs. Adams Diversified Equity | Oakhurst Fixed vs. Lord Abbett Diversified |
| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |