Correlation Between Western Asset and Greenspring Fund
Can any of the company-specific risk be diversified away by investing in both Western Asset and Greenspring Fund 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 Greenspring Fund 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 Greenspring Fund Retail, you can compare the effects of market volatilities on Western Asset and Greenspring Fund 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 Greenspring Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Greenspring Fund.
Diversification Opportunities for Western Asset and Greenspring Fund
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Greenspring is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Premier and Greenspring Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenspring Fund Retail 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 Greenspring Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenspring Fund Retail has no effect on the direction of Western Asset i.e., Western Asset and Greenspring Fund go up and down completely randomly.
Pair Corralation between Western Asset and Greenspring Fund
If you would invest 2,646 in Greenspring Fund Retail on August 31, 2024 and sell it today you would earn a total of 209.00 from holding Greenspring Fund Retail or generate 7.9% 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. Greenspring Fund Retail
Performance |
| Timeline |
| Western Asset Premier |
| Greenspring Fund Retail |
Western Asset and Greenspring Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Greenspring Fund
The main advantage of trading using opposite Western Asset and Greenspring Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Greenspring Fund 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 Greenspring Fund will offset losses from the drop in Greenspring Fund'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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