Correlation Between Western Asset and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Western Asset and Issachar Fund 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 Issachar Fund 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 Issachar Fund Class, you can compare the effects of market volatilities on Western Asset and Issachar Fund 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 Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Issachar Fund.
Diversification Opportunities for Western Asset and Issachar Fund
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Issachar is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class 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 Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Western Asset i.e., Western Asset and Issachar Fund go up and down completely randomly.
Pair Corralation between Western Asset and Issachar Fund
Assuming the 90 days horizon Western Asset High is expected to generate 0.11 times more return on investment than Issachar Fund. However, Western Asset High is 8.88 times less risky than Issachar Fund. It trades about -0.22 of its potential returns per unit of risk. Issachar Fund Class is currently generating about -0.2 per unit of risk. If you would invest 705.00 in Western Asset High on October 14, 2024 and sell it today you would lose (5.00) from holding Western Asset High or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset High vs. Issachar Fund Class
Performance |
| Timeline |
| Western Asset High |
| Issachar Fund Class |
Western Asset and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Issachar Fund
The main advantage of trading using opposite Western Asset and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.| Western Asset vs. Fidelity Capital Income | Western Asset vs. Guggenheim High Yield | Western Asset vs. Inverse High Yield | Western Asset vs. Barings High Yield |
| Issachar Fund vs. Short Real Estate | Issachar Fund vs. Fidelity Real Estate | Issachar Fund vs. Rreef Property Trust | Issachar Fund vs. Jhancock Real Estate |
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 Stocks Directory module to find actively traded stocks across global markets.
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