Correlation Between Siit Ultra and Western Asset
Can any of the company-specific risk be diversified away by investing in both Siit Ultra 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 Siit Ultra and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Ultra Short and Western Asset E, you can compare the effects of market volatilities on Siit Ultra 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 Siit Ultra with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Ultra and Western Asset.
Diversification Opportunities for Siit Ultra and Western Asset
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and Western is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Siit Ultra Short 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 Siit Ultra 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 Siit Ultra Short 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 Siit Ultra i.e., Siit Ultra and Western Asset go up and down completely randomly.
Pair Corralation between Siit Ultra and Western Asset
Assuming the 90 days horizon Siit Ultra Short is not expected to generate positive returns. However, Siit Ultra Short is 5.86 times less risky than Western Asset. It waists most of its returns potential to compensate for thr risk taken. Western Asset is generating about 0.14 per unit of risk. If you would invest 920.00 in Western Asset E on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Western Asset E or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Ultra Short vs. Western Asset E
Performance |
| Timeline |
| Siit Ultra Short |
| Western Asset E |
Siit Ultra and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Ultra and Western Asset
The main advantage of trading using opposite Siit Ultra and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Ultra 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.| Siit Ultra vs. Columbia Real Estate | Siit Ultra vs. Forum Real Estate | Siit Ultra vs. Jhancock Real Estate | Siit Ultra vs. Tiaa Cref Real Estate |
| Western Asset vs. Shelton Emerging Markets | Western Asset vs. Fundvantage Trust | Western Asset vs. Calamos Market Neutral | Western Asset vs. Legg Mason Partners |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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