Correlation Between Western Asset and Saat Market
Can any of the company-specific risk be diversified away by investing in both Western Asset and Saat Market 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 Saat Market 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 Saat Market Growth, you can compare the effects of market volatilities on Western Asset and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Saat Market.
Diversification Opportunities for Western Asset and Saat Market
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Saat is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market 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 High are associated (or correlated) with Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Western Asset i.e., Western Asset and Saat Market go up and down completely randomly.
Pair Corralation between Western Asset and Saat Market
Assuming the 90 days horizon Western Asset High is expected to generate 0.58 times more return on investment than Saat Market. However, Western Asset High is 1.73 times less risky than Saat Market. It trades about 0.11 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.05 per unit of risk. 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 | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset High vs. Saat Market Growth
Performance |
| Timeline |
| Western Asset High |
| Saat Market Growth |
Western Asset and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Saat Market
The main advantage of trading using opposite Western Asset and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market'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 |
| Saat Market vs. California Bond Fund | Saat Market vs. Ambrus Core Bond | Saat Market vs. T Rowe Price | Saat Market vs. Versatile Bond Portfolio |
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 CEOs Directory module to screen CEOs from public companies around the world.
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