Correlation Between Payden Global and Payden Strategic
Can any of the company-specific risk be diversified away by investing in both Payden Global and Payden Strategic 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 Payden Global and Payden Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden Global Fixed and Payden Strategic Income, you can compare the effects of market volatilities on Payden Global and Payden Strategic 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 Payden Global with a short position of Payden Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Global and Payden Strategic.
Diversification Opportunities for Payden Global and Payden Strategic
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Payden and Payden is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Payden Global Fixed and Payden Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Strategic Income and Payden Global 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 Payden Global Fixed are associated (or correlated) with Payden Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Strategic Income has no effect on the direction of Payden Global i.e., Payden Global and Payden Strategic go up and down completely randomly.
Pair Corralation between Payden Global and Payden Strategic
Assuming the 90 days horizon Payden Global is expected to generate 1.18 times less return on investment than Payden Strategic. In addition to that, Payden Global is 1.4 times more volatile than Payden Strategic Income. It trades about 0.07 of its total potential returns per unit of risk. Payden Strategic Income is currently generating about 0.11 per unit of volatility. If you would invest 856.00 in Payden Strategic Income on January 16, 2025 and sell it today you would earn a total of 92.00 from holding Payden Strategic Income or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Payden Global Fixed vs. Payden Strategic Income
Performance |
| Timeline |
| Payden Global Fixed |
| Payden Strategic Income |
Payden Global and Payden Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Global and Payden Strategic
The main advantage of trading using opposite Payden Global and Payden Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Global position performs unexpectedly, Payden Strategic 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 Payden Strategic will offset losses from the drop in Payden Strategic's long position.| Payden Global vs. Doubleline Emerging Markets | Payden Global vs. The Emerging Markets | Payden Global vs. Dws Emerging Markets | Payden Global vs. Transamerica Emerging Markets |
| Payden Strategic vs. John Hancock Variable | Payden Strategic vs. Us Government Plus | Payden Strategic vs. Government Securities Fund | Payden Strategic vs. Us Government Securities |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |