Correlation Between Western Asset and Rbc Bluebay
Can any of the company-specific risk be diversified away by investing in both Western Asset and Rbc Bluebay 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 Rbc Bluebay 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 Rbc Bluebay Core, you can compare the effects of market volatilities on Western Asset and Rbc Bluebay 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 Rbc Bluebay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Rbc Bluebay.
Diversification Opportunities for Western Asset and Rbc Bluebay
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Rbc is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Rbc Bluebay Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Bluebay Core 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 Rbc Bluebay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Bluebay Core has no effect on the direction of Western Asset i.e., Western Asset and Rbc Bluebay go up and down completely randomly.
Pair Corralation between Western Asset and Rbc Bluebay
Assuming the 90 days horizon Western Asset High is expected to generate 0.82 times more return on investment than Rbc Bluebay. However, Western Asset High is 1.22 times less risky than Rbc Bluebay. It trades about 0.11 of its potential returns per unit of risk. Rbc Bluebay Core is currently generating about 0.06 per unit of risk. If you would invest 582.00 in Western Asset High on January 13, 2025 and sell it today you would earn a total of 95.00 from holding Western Asset High or generate 16.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset High vs. Rbc Bluebay Core
Performance |
| Timeline |
| Western Asset High |
| Rbc Bluebay Core |
Western Asset and Rbc Bluebay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Rbc Bluebay
The main advantage of trading using opposite Western Asset and Rbc Bluebay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Rbc Bluebay 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 Rbc Bluebay will offset losses from the drop in Rbc Bluebay's long position.| Western Asset vs. Clearbridge Aggressive Growth | Western Asset vs. Clearbridge Small Cap | Western Asset vs. Qs International Equity | Western Asset vs. Clearbridge Appreciation Fund |
| Rbc Bluebay vs. Gmo International Equity | Rbc Bluebay vs. Crossmark Steward Equity | Rbc Bluebay vs. Doubleline E Fixed | Rbc Bluebay vs. Calvert 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |