Correlation Between Western Asset and Fidelity Summer
Can any of the company-specific risk be diversified away by investing in both Western Asset and Fidelity Summer 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 Western Asset and Fidelity Summer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Imf and Fidelity Summer Street, you can compare the effects of market volatilities on Western Asset and Fidelity Summer 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 Western Asset with a short position of Fidelity Summer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Fidelity Summer.
Diversification Opportunities for Western Asset and Fidelity Summer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Imf and Fidelity Summer Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Summer Street and Western Asset 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 Western Asset Imf are associated (or correlated) with Fidelity Summer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Summer Street has no effect on the direction of Western Asset i.e., Western Asset and Fidelity Summer go up and down completely randomly.
Pair Corralation between Western Asset and Fidelity Summer
If you would invest 733.00 in Western Asset Imf on November 28, 2024 and sell it today you would earn a total of 60.00 from holding Western Asset Imf or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Asset Imf vs. Fidelity Summer Street
Performance |
| Timeline |
| Western Asset Imf |
| Fidelity Summer Street |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Western Asset and Fidelity Summer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Fidelity Summer
The main advantage of trading using opposite Western Asset and Fidelity Summer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Fidelity Summer 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 Fidelity Summer will offset losses from the drop in Fidelity Summer's long position.| Western Asset vs. Carlyle Secured Lending | Western Asset vs. Sixth Street Specialty | Western Asset vs. Golub Capital BDC | Western Asset vs. Fidus Investment Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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