Correlation Between Western Asset and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Western Asset and Asg Managed 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 Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Inflation and Asg Managed Futures, you can compare the effects of market volatilities on Western Asset and Asg Managed 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 Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Asg Managed.
Diversification Opportunities for Western Asset and Asg Managed
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Asg is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures 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 Inflation are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Western Asset i.e., Western Asset and Asg Managed go up and down completely randomly.
Pair Corralation between Western Asset and Asg Managed
Assuming the 90 days horizon Western Asset is expected to generate 56.4 times less return on investment than Asg Managed. But when comparing it to its historical volatility, Western Asset Inflation is 1.99 times less risky than Asg Managed. It trades about 0.0 of its potential returns per unit of risk. Asg Managed Futures is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 863.00 in Asg Managed Futures on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Asg Managed Futures or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Inflation vs. Asg Managed Futures
Performance |
| Timeline |
| Western Asset Inflation |
| Asg Managed Futures |
Western Asset and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Asg Managed
The main advantage of trading using opposite Western Asset and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Western Asset vs. Vanguard Inflation Protected Securities | Western Asset vs. Vanguard Inflation Protected Securities | Western Asset vs. American Funds Inflation | Western Asset vs. American Funds Inflation |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. American Beacon Ahl |
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 Stocks Directory module to find actively traded stocks across global markets.
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