Correlation Between Western Asset and Conquer Risk
Can any of the company-specific risk be diversified away by investing in both Western Asset and Conquer Risk 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 Conquer Risk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Premier and Conquer Risk Tactical, you can compare the effects of market volatilities on Western Asset and Conquer Risk 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 Conquer Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Conquer Risk.
Diversification Opportunities for Western Asset and Conquer Risk
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Conquer is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Premier and Conquer Risk Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquer Risk Tactical 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 Premier are associated (or correlated) with Conquer Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquer Risk Tactical has no effect on the direction of Western Asset i.e., Western Asset and Conquer Risk go up and down completely randomly.
Pair Corralation between Western Asset and Conquer Risk
If you would invest 938.00 in Conquer Risk Tactical on August 31, 2024 and sell it today you would earn a total of 59.00 from holding Conquer Risk Tactical or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Premier vs. Conquer Risk Tactical
Performance |
| Timeline |
| Western Asset Premier |
| Conquer Risk Tactical |
Western Asset and Conquer Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Conquer Risk
The main advantage of trading using opposite Western Asset and Conquer Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Conquer Risk 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 Conquer Risk will offset losses from the drop in Conquer Risk's long position.| Western Asset vs. Calvert Emerging Markets | Western Asset vs. Goldman Sachs Emerging | Western Asset vs. Origin Emerging Markets | Western Asset vs. Ashmore Emerging Markets |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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