Correlation Between Western Asset and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Western Asset and Eagle Growth 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 Eagle Growth 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 Eagle Growth Income, you can compare the effects of market volatilities on Western Asset and Eagle Growth 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 Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Eagle Growth.
Diversification Opportunities for Western Asset and Eagle Growth
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Eagle is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Western Asset i.e., Western Asset and Eagle Growth go up and down completely randomly.
Pair Corralation between Western Asset and Eagle Growth
Assuming the 90 days horizon Western Asset is expected to generate 4.94 times less return on investment than Eagle Growth. But when comparing it to its historical volatility, Western Asset Inflation is 2.44 times less risky than Eagle Growth. It trades about 0.15 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,211 in Eagle Growth Income on September 2, 2024 and sell it today you would earn a total of 107.00 from holding Eagle Growth Income or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Inflation vs. Eagle Growth Income
Performance |
| Timeline |
| Western Asset Inflation |
| Eagle Growth Income |
Western Asset and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Eagle Growth
The main advantage of trading using opposite Western Asset and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Western Asset vs. Rbc Global Opportunities | Western Asset vs. T Rowe Price | Western Asset vs. Barings Global Floating | Western Asset vs. Wisdomtree Siegel Global |
| Eagle Growth vs. Oklahoma College Savings | Eagle Growth vs. Western Asset Inflation | Eagle Growth vs. Asg Managed Futures | Eagle Growth vs. Lord Abbett Inflation |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |