Correlation Between Western Asset and Fisher Large
Can any of the company-specific risk be diversified away by investing in both Western Asset and Fisher Large 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 Fisher Large 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 Fisher Large Cap, you can compare the effects of market volatilities on Western Asset and Fisher Large 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 Fisher Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Fisher Large.
Diversification Opportunities for Western Asset and Fisher Large
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Fisher is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset E and Fisher Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Large Cap 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 Fisher Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Large Cap has no effect on the direction of Western Asset i.e., Western Asset and Fisher Large go up and down completely randomly.
Pair Corralation between Western Asset and Fisher Large
Assuming the 90 days horizon Western Asset E is expected to under-perform the Fisher Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Western Asset E is 2.34 times less risky than Fisher Large. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Fisher Large Cap is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,829 in Fisher Large Cap on September 13, 2024 and sell it today you would earn a total of 72.00 from holding Fisher Large Cap or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset E vs. Fisher Large Cap
Performance |
| Timeline |
| Western Asset E |
| Fisher Large Cap |
Western Asset and Fisher Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Fisher Large
The main advantage of trading using opposite Western Asset and Fisher Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Fisher Large 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 Fisher Large will offset losses from the drop in Fisher Large's long position.| Western Asset vs. Franklin Mutual Beacon | Western Asset vs. Templeton Developing Markets | Western Asset vs. Franklin Mutual Global | Western Asset vs. Franklin Mutual Global |
| Fisher Large vs. Fisher All Foreign | Fisher Large vs. Tactical Multi Purpose Fund | Fisher Large vs. Fisher Small Cap | Fisher Large vs. Fisher Stock |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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