Correlation Between Western Asset and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both Western Asset and Fidelity Sai 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 Fidelity Sai 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 Fidelity Sai Inflationfocused, you can compare the effects of market volatilities on Western Asset and Fidelity Sai 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 Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Fidelity Sai.
Diversification Opportunities for Western Asset and Fidelity Sai
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Fidelity is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and Fidelity Sai Inflationfocused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Inflati 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 Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Inflati has no effect on the direction of Western Asset i.e., Western Asset and Fidelity Sai go up and down completely randomly.
Pair Corralation between Western Asset and Fidelity Sai
Assuming the 90 days horizon Western Asset is expected to generate 2.16 times less return on investment than Fidelity Sai. But when comparing it to its historical volatility, Western Asset Inflation is 3.09 times less risky than Fidelity Sai. It trades about 0.05 of its potential returns per unit of risk. Fidelity Sai Inflationfocused is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,503 in Fidelity Sai Inflationfocused on August 29, 2024 and sell it today you would earn a total of 52.00 from holding Fidelity Sai Inflationfocused or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Inflation vs. Fidelity Sai Inflationfocused
Performance |
| Timeline |
| Western Asset Inflation |
| Fidelity Sai Inflati |
Western Asset and Fidelity Sai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Fidelity Sai
The main advantage of trading using opposite Western Asset and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Fidelity Sai 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 Fidelity Sai will offset losses from the drop in Fidelity Sai's long position.| Western Asset vs. Vanguard Inflation Protected Securities | Western Asset vs. HUMANA INC | Western Asset vs. Aquagold International | Western Asset vs. Barloworld Ltd ADR |
| Fidelity Sai vs. Pimco Moditiesplus Strategy | Fidelity Sai vs. HUMANA INC | Fidelity Sai vs. Aquagold International | Fidelity Sai vs. Barloworld Ltd ADR |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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