Correlation Between Western Asset and Ge S
Can any of the company-specific risk be diversified away by investing in both Western Asset and Ge S 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 Ge S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Total and Ge S Us, you can compare the effects of market volatilities on Western Asset and Ge S 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 Ge S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Ge S.
Diversification Opportunities for Western Asset and Ge S
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and GESSX is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Total and Ge S Us in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ge S Us 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 Total are associated (or correlated) with Ge S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ge S Us has no effect on the direction of Western Asset i.e., Western Asset and Ge S go up and down completely randomly.
Pair Corralation between Western Asset and Ge S
If you would invest 902.00 in Western Asset Total on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Western Asset Total or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Western Asset Total vs. Ge S Us
Performance |
| Timeline |
| Western Asset Total |
| Ge S Us |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Ge S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Ge S
The main advantage of trading using opposite Western Asset and Ge S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Ge S 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 Ge S will offset losses from the drop in Ge S's long position.| Western Asset vs. Pro Blend Moderate Term | Western Asset vs. Target Retirement 2040 | Western Asset vs. Franklin Lifesmart Retirement | Western Asset vs. Fidelity Managed Retirement |
| Ge S vs. Gabelli Convertible And | Ge S vs. Allianzgi Convertible Income | Ge S vs. Columbia Vertible Securities | Ge S vs. Putnam Convertible Incm Gwth |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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