Correlation Between Western Asset and Sit Esg
Can any of the company-specific risk be diversified away by investing in both Western Asset and Sit Esg 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 Sit Esg 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 Sit Esg Growth, you can compare the effects of market volatilities on Western Asset and Sit Esg 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 Sit Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Sit Esg.
Diversification Opportunities for Western Asset and Sit Esg
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and SIT is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and Sit Esg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Esg Growth 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 Sit Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Esg Growth has no effect on the direction of Western Asset i.e., Western Asset and Sit Esg go up and down completely randomly.
Pair Corralation between Western Asset and Sit Esg
Assuming the 90 days horizon Western Asset is expected to generate 8.88 times less return on investment than Sit Esg. But when comparing it to its historical volatility, Western Asset Inflation is 1.77 times less risky than Sit Esg. It trades about 0.06 of its potential returns per unit of risk. Sit Esg Growth is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,193 in Sit Esg Growth on September 1, 2024 and sell it today you would earn a total of 90.00 from holding Sit Esg Growth or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Asset Inflation vs. Sit Esg Growth
Performance |
| Timeline |
| Western Asset Inflation |
| Sit Esg Growth |
Western Asset and Sit Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Sit Esg
The main advantage of trading using opposite Western Asset and Sit Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Sit Esg 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 Sit Esg will offset losses from the drop in Sit Esg's long position.| Western Asset vs. Iaadx | Western Asset vs. Abr 7525 Volatility | Western Asset vs. Ab Value Fund | Western Asset vs. Bbh Partner Fund |
| Sit Esg vs. Sit Small Cap | Sit Esg vs. Sit Global Dividend | Sit Esg vs. Sit Small Cap | Sit Esg vs. Sit Developing Markets |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |