Correlation Between Queens Road and Western Asset
Can any of the company-specific risk be diversified away by investing in both Queens Road 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 Queens Road and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Queens Road Small and Western Asset E, you can compare the effects of market volatilities on Queens Road 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 Queens Road with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Queens Road and Western Asset.
Diversification Opportunities for Queens Road and Western Asset
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Queens and WESTERN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Queens Road Small 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 Queens Road 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 Queens Road Small 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 Queens Road i.e., Queens Road and Western Asset go up and down completely randomly.
Pair Corralation between Queens Road and Western Asset
Assuming the 90 days horizon Queens Road Small is expected to generate 3.09 times more return on investment than Western Asset. However, Queens Road is 3.09 times more volatile than Western Asset E. It trades about 0.18 of its potential returns per unit of risk. Western Asset E is currently generating about -0.06 per unit of risk. If you would invest 3,890 in Queens Road Small on September 2, 2024 and sell it today you would earn a total of 473.00 from holding Queens Road Small or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Queens Road Small vs. Western Asset E
Performance |
| Timeline |
| Queens Road Small |
| Western Asset E |
Queens Road and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Queens Road and Western Asset
The main advantage of trading using opposite Queens Road and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Queens Road 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.| Queens Road vs. Morgan Stanley Global | Queens Road vs. Wasatch Global Opportunities | Queens Road vs. Ms Global Fixed | Queens Road vs. Artisan Global Unconstrained |
| Western Asset vs. Artisan High Income | Western Asset vs. Federated Institutional High | Western Asset vs. Aqr Risk Balanced Modities | Western Asset vs. California High Yield Municipal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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