Correlation Between Rbc Bluebay and Western Asset
Can any of the company-specific risk be diversified away by investing in both Rbc Bluebay 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 Rbc Bluebay and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc Bluebay Global and Western Asset Diversified, you can compare the effects of market volatilities on Rbc Bluebay 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 Rbc Bluebay with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc Bluebay and Western Asset.
Diversification Opportunities for Rbc Bluebay and Western Asset
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rbc and Western is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Rbc Bluebay Global 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 Rbc Bluebay 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 Rbc Bluebay Global 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 Rbc Bluebay i.e., Rbc Bluebay and Western Asset go up and down completely randomly.
Pair Corralation between Rbc Bluebay and Western Asset
Assuming the 90 days horizon Rbc Bluebay Global is expected to generate 0.64 times more return on investment than Western Asset. However, Rbc Bluebay Global is 1.55 times less risky than Western Asset. It trades about 0.18 of its potential returns per unit of risk. Western Asset Diversified is currently generating about 0.02 per unit of risk. If you would invest 847.00 in Rbc Bluebay Global on September 2, 2024 and sell it today you would earn a total of 139.00 from holding Rbc Bluebay Global or generate 16.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbc Bluebay Global vs. Western Asset Diversified
Performance |
| Timeline |
| Rbc Bluebay Global |
| Western Asset Diversified |
Rbc Bluebay and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc Bluebay and Western Asset
The main advantage of trading using opposite Rbc Bluebay and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc Bluebay 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.| Rbc Bluebay vs. Davis Financial Fund | Rbc Bluebay vs. Royce Global Financial | Rbc Bluebay vs. John Hancock Financial | Rbc Bluebay vs. Icon Financial Fund |
| Western Asset vs. Morningstar Unconstrained Allocation | Western Asset vs. Old Westbury Large | Western Asset vs. T Rowe Price | Western Asset vs. Enhanced Large Pany |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |