Correlation Between Western Asset and Artisan High
Can any of the company-specific risk be diversified away by investing in both Western Asset and Artisan High 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 Artisan High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset E and Artisan High Income, you can compare the effects of market volatilities on Western Asset and Artisan High 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 Artisan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Artisan High.
Diversification Opportunities for Western Asset and Artisan High
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WESTERN and Artisan is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset E and Artisan High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan High Income 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 E are associated (or correlated) with Artisan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan High Income has no effect on the direction of Western Asset i.e., Western Asset and Artisan High go up and down completely randomly.
Pair Corralation between Western Asset and Artisan High
Assuming the 90 days horizon Western Asset is expected to generate 2.86 times less return on investment than Artisan High. In addition to that, Western Asset is 1.89 times more volatile than Artisan High Income. It trades about 0.03 of its total potential returns per unit of risk. Artisan High Income is currently generating about 0.19 per unit of volatility. If you would invest 825.00 in Artisan High Income on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Artisan High Income or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset E vs. Artisan High Income
Performance |
| Timeline |
| Western Asset E |
| Artisan High Income |
Western Asset and Artisan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Artisan High
The main advantage of trading using opposite Western Asset and Artisan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Artisan High 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 Artisan High will offset losses from the drop in Artisan High's long position.| Western Asset vs. Artisan High Income | Western Asset vs. Federated Institutional High | Western Asset vs. Aqr Risk Balanced Modities | Western Asset vs. California High Yield Municipal |
| Artisan High vs. Financials Ultrasector Profund | Artisan High vs. Gabelli Global Financial | Artisan High vs. Fidelity Advisor Financial | Artisan High vs. Goldman Sachs Financial |
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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