Correlation Between WISCONSIN and Western Asset
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By analyzing existing cross correlation between WISCONSIN ELEC PWR and Western Asset Investment, you can compare the effects of market volatilities on WISCONSIN 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 WISCONSIN with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of WISCONSIN and Western Asset.
Diversification Opportunities for WISCONSIN and Western Asset
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WISCONSIN and Western is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding WISCONSIN ELEC PWR and Western Asset Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Investment and WISCONSIN 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 WISCONSIN ELEC PWR 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 Investment has no effect on the direction of WISCONSIN i.e., WISCONSIN and Western Asset go up and down completely randomly.
Pair Corralation between WISCONSIN and Western Asset
Assuming the 90 days trading horizon WISCONSIN ELEC PWR is expected to generate 8.7 times more return on investment than Western Asset. However, WISCONSIN is 8.7 times more volatile than Western Asset Investment. It trades about 0.07 of its potential returns per unit of risk. Western Asset Investment is currently generating about 0.06 per unit of risk. If you would invest 10,256 in WISCONSIN ELEC PWR on September 12, 2024 and sell it today you would earn a total of 1,257 from holding WISCONSIN ELEC PWR or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 15.41% |
| Values | Daily Returns |
WISCONSIN ELEC PWR vs. Western Asset Investment
Performance |
| Timeline |
| WISCONSIN ELEC PWR |
| Western Asset Investment |
WISCONSIN and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WISCONSIN and Western Asset
The main advantage of trading using opposite WISCONSIN and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WISCONSIN 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.| WISCONSIN vs. SEI Investments | WISCONSIN vs. Mind Medicine | WISCONSIN vs. Western Asset Investment | WISCONSIN vs. Ardelyx |
| Western Asset vs. Pioneer Floating Rate | Western Asset vs. The Gabelli Equity | Western Asset vs. Pioneer Municipal High | Western Asset vs. Nuveen Global High |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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