Correlation Between Upright Assets and Western Asset
Can any of the company-specific risk be diversified away by investing in both Upright Assets 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 Upright Assets and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upright Assets Allocation and Western Asset Intermediate, you can compare the effects of market volatilities on Upright Assets 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 Upright Assets with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upright Assets and Western Asset.
Diversification Opportunities for Upright Assets and Western Asset
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Upright and Western is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Upright Assets Allocation and Western Asset Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Interm and Upright Assets 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 Upright Assets Allocation 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 Interm has no effect on the direction of Upright Assets i.e., Upright Assets and Western Asset go up and down completely randomly.
Pair Corralation between Upright Assets and Western Asset
Assuming the 90 days horizon Upright Assets Allocation is expected to generate 5.69 times more return on investment than Western Asset. However, Upright Assets is 5.69 times more volatile than Western Asset Intermediate. It trades about 0.06 of its potential returns per unit of risk. Western Asset Intermediate is currently generating about 0.04 per unit of risk. If you would invest 903.00 in Upright Assets Allocation on September 12, 2024 and sell it today you would earn a total of 549.00 from holding Upright Assets Allocation or generate 60.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Upright Assets Allocation vs. Western Asset Intermediate
Performance |
| Timeline |
| Upright Assets Allocation |
| Western Asset Interm |
Upright Assets and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upright Assets and Western Asset
The main advantage of trading using opposite Upright Assets and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Assets 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.| Upright Assets vs. SCOR PK | Upright Assets vs. Morningstar Unconstrained Allocation | Upright Assets vs. Via Renewables | Upright Assets vs. Bondbloxx ETF Trust |
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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.
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