Correlation Between Western Asset and Fuller Thaler
Can any of the company-specific risk be diversified away by investing in both Western Asset and Fuller Thaler 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 Fuller Thaler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset High and Fuller Thaler Behavioral, you can compare the effects of market volatilities on Western Asset and Fuller Thaler 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 Fuller Thaler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Fuller Thaler.
Diversification Opportunities for Western Asset and Fuller Thaler
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and FULLER is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Fuller Thaler Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuller Thaler Behavioral 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 High are associated (or correlated) with Fuller Thaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuller Thaler Behavioral has no effect on the direction of Western Asset i.e., Western Asset and Fuller Thaler go up and down completely randomly.
Pair Corralation between Western Asset and Fuller Thaler
Assuming the 90 days horizon Western Asset High is expected to generate 0.22 times more return on investment than Fuller Thaler. However, Western Asset High is 4.47 times less risky than Fuller Thaler. It trades about 0.26 of its potential returns per unit of risk. Fuller Thaler Behavioral is currently generating about -0.18 per unit of risk. If you would invest 700.00 in Western Asset High on December 1, 2024 and sell it today you would earn a total of 7.00 from holding Western Asset High or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Asset High vs. Fuller Thaler Behavioral
Performance |
| Timeline |
| Western Asset High |
| Fuller Thaler Behavioral |
Western Asset and Fuller Thaler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Fuller Thaler
The main advantage of trading using opposite Western Asset and Fuller Thaler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Fuller Thaler 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 Fuller Thaler will offset losses from the drop in Fuller Thaler's long position.| Western Asset vs. Transamerica Short Term Bond | Western Asset vs. Angel Oak Ultrashort | Western Asset vs. Catholic Responsible Investments | Western Asset vs. Seix Govt Sec |
| Fuller Thaler vs. Bbh Partner Fund | Fuller Thaler vs. T Rowe Price | Fuller Thaler vs. Dodge International Stock | Fuller Thaler vs. Tax Managed International Equity |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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