Correlation Between Pioneer High and Western Asset
Can any of the company-specific risk be diversified away by investing in both Pioneer High 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 Pioneer High and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer High Income and Western Asset Global, you can compare the effects of market volatilities on Pioneer High 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 Pioneer High with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer High and Western Asset.
Diversification Opportunities for Pioneer High and Western Asset
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pioneer and Western is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer High Income and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global and Pioneer High 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 Pioneer High 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 Global has no effect on the direction of Pioneer High i.e., Pioneer High and Western Asset go up and down completely randomly.
Pair Corralation between Pioneer High and Western Asset
Considering the 90-day investment horizon Pioneer High Income is expected to under-perform the Western Asset. But the etf apears to be less risky and, when comparing its historical volatility, Pioneer High Income is 1.05 times less risky than Western Asset. The etf trades about -0.15 of its potential returns per unit of risk. The Western Asset Global is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,134 in Western Asset Global on January 13, 2025 and sell it today you would lose (46.00) from holding Western Asset Global or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pioneer High Income vs. Western Asset Global
Performance |
| Timeline |
| Pioneer High Income |
| Western Asset Global |
Pioneer High and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer High and Western Asset
The main advantage of trading using opposite Pioneer High and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer High 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.| Pioneer High vs. Nuveen Floating Rate | Pioneer High vs. Eaton Vance Senior | Pioneer High vs. Virtus Global Multi | Pioneer High vs. Invesco California Value |
| Western Asset vs. Western Asset High | Western Asset vs. Western Asset Global | Western Asset vs. European Equity Closed | Western Asset vs. Doubleline Opportunistic Credit |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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