Correlation Between Western Asset and Ab All
Can any of the company-specific risk be diversified away by investing in both Western Asset and Ab All 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 Ab All 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 Ab All Market, you can compare the effects of market volatilities on Western Asset and Ab All 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 Ab All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Ab All.
Diversification Opportunities for Western Asset and Ab All
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and AMTOX is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and Ab All Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab All Market 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 Ab All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab All Market has no effect on the direction of Western Asset i.e., Western Asset and Ab All go up and down completely randomly.
Pair Corralation between Western Asset and Ab All
Assuming the 90 days horizon Western Asset is expected to generate 3.86 times less return on investment than Ab All. But when comparing it to its historical volatility, Western Asset Inflation is 1.87 times less risky than Ab All. It trades about 0.03 of its potential returns per unit of risk. Ab All Market is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 813.00 in Ab All Market on August 31, 2024 and sell it today you would earn a total of 121.00 from holding Ab All Market or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Inflation vs. Ab All Market
Performance |
| Timeline |
| Western Asset Inflation |
| Ab All Market |
Western Asset and Ab All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Ab All
The main advantage of trading using opposite Western Asset and Ab All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Ab All 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 Ab All will offset losses from the drop in Ab All's long position.| Western Asset vs. Vanguard Inflation Protected Securities | Western Asset vs. Vanguard Inflation Protected Securities | Western Asset vs. American Funds Inflation |
| Ab All vs. Janus Trarian Fund | Ab All vs. Janus Research Fund | Ab All vs. Janus Enterprise Fund | Ab All vs. Janus Global Technology |
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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