Correlation Between Western Asset and Gmo Sgm
Can any of the company-specific risk be diversified away by investing in both Western Asset and Gmo Sgm 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 Gmo Sgm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Managed and Gmo Sgm Major, you can compare the effects of market volatilities on Western Asset and Gmo Sgm 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 Gmo Sgm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Gmo Sgm.
Diversification Opportunities for Western Asset and Gmo Sgm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Gmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Managed and Gmo Sgm Major in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Sgm Major 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 Managed are associated (or correlated) with Gmo Sgm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Sgm Major has no effect on the direction of Western Asset i.e., Western Asset and Gmo Sgm go up and down completely randomly.
Pair Corralation between Western Asset and Gmo Sgm
If you would invest 1,494 in Western Asset Managed on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Western Asset Managed or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Asset Managed vs. Gmo Sgm Major
Performance |
| Timeline |
| Western Asset Managed |
| Gmo Sgm Major |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Gmo Sgm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Gmo Sgm
The main advantage of trading using opposite Western Asset and Gmo Sgm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Gmo Sgm 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 Gmo Sgm will offset losses from the drop in Gmo Sgm's long position.| Western Asset vs. Diversified Municipal Portfolio | Western Asset vs. Western Asset Managed | Western Asset vs. Western Asset Managed | Western Asset vs. Nuveen High Yield |
| Gmo Sgm vs. Gmo Opportunistic Income | Gmo Sgm vs. Guggenheim Limited Duration | Gmo Sgm vs. Western Asset Managed | Gmo Sgm vs. Nuveen High Yield |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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