Correlation Between Stadion Trilogy and Western Asset
Can any of the company-specific risk be diversified away by investing in both Stadion Trilogy 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 Stadion Trilogy and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stadion Trilogy Alternative and Western Asset High, you can compare the effects of market volatilities on Stadion Trilogy 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 Stadion Trilogy with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stadion Trilogy and Western Asset.
Diversification Opportunities for Stadion Trilogy and Western Asset
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stadion and Western is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Stadion Trilogy Alternative and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Stadion Trilogy 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 Stadion Trilogy Alternative 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 High has no effect on the direction of Stadion Trilogy i.e., Stadion Trilogy and Western Asset go up and down completely randomly.
Pair Corralation between Stadion Trilogy and Western Asset
If you would invest 708.00 in Western Asset High on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Western Asset High or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Stadion Trilogy Alternative vs. Western Asset High
Performance |
| Timeline |
| Stadion Trilogy Alte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Western Asset High |
Stadion Trilogy and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stadion Trilogy and Western Asset
The main advantage of trading using opposite Stadion Trilogy and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stadion Trilogy 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.| Stadion Trilogy vs. Balanced Fund Retail | Stadion Trilogy vs. Ms Global Fixed | Stadion Trilogy vs. Scharf Fund Retail | Stadion Trilogy vs. Cutler Equity |
| Western Asset vs. SCOR PK | Western Asset vs. Morningstar Unconstrained Allocation | Western Asset vs. Via Renewables | Western Asset vs. Bondbloxx ETF Trust |
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.
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