Correlation Between Western Asset and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Western Asset and Aim Investment 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 Aim Investment 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 Aim Investment Funds, you can compare the effects of market volatilities on Western Asset and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Aim Investment.
Diversification Opportunities for Western Asset and Aim Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Aim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Aim Investment Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Funds 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Funds has no effect on the direction of Western Asset i.e., Western Asset and Aim Investment go up and down completely randomly.
Pair Corralation between Western Asset and Aim Investment
If you would invest 593.00 in Western Asset High on September 3, 2024 and sell it today you would earn a total of 115.00 from holding Western Asset High or generate 19.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Asset High vs. Aim Investment Funds
Performance |
| Timeline |
| Western Asset High |
| Aim Investment Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Aim Investment
The main advantage of trading using opposite Western Asset and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Western Asset vs. Oklahoma College Savings | Western Asset vs. Massmutual Select Diversified | Western Asset vs. Jpmorgan Emerging Markets | Western Asset vs. Locorr Market Trend |
| Aim Investment vs. Ab Global Risk | Aim Investment vs. Western Asset High | Aim Investment vs. Pioneer High Yield | Aim Investment vs. Calvert High Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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