Correlation Between Fundvantage Trust and Western Asset
Can any of the company-specific risk be diversified away by investing in both Fundvantage Trust 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 Fundvantage Trust and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundvantage Trust and Western Asset E, you can compare the effects of market volatilities on Fundvantage Trust 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 Fundvantage Trust with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundvantage Trust and Western Asset.
Diversification Opportunities for Fundvantage Trust and Western Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fundvantage and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fundvantage Trust and Western Asset E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset E and Fundvantage Trust 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 Fundvantage Trust 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 E has no effect on the direction of Fundvantage Trust i.e., Fundvantage Trust and Western Asset go up and down completely randomly.
Pair Corralation between Fundvantage Trust and Western Asset
If you would invest 898.00 in Western Asset E on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Western Asset E or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.63% |
| Values | Daily Returns |
Fundvantage Trust vs. Western Asset E
Performance |
| Timeline |
| Fundvantage Trust |
| Western Asset E |
Fundvantage Trust and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundvantage Trust and Western Asset
The main advantage of trading using opposite Fundvantage Trust and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundvantage Trust 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.| Fundvantage Trust vs. Vanguard Total Stock | Fundvantage Trust vs. Vanguard 500 Index | Fundvantage Trust vs. Vanguard Total Stock | Fundvantage Trust vs. Vanguard Total Stock |
| Western Asset vs. Shelton Emerging Markets | Western Asset vs. Fundvantage Trust | Western Asset vs. Calamos Market Neutral | Western Asset vs. Legg Mason Partners |
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.
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