Correlation Between Western Asset and Abrdn Physical
Can any of the company-specific risk be diversified away by investing in both Western Asset and Abrdn Physical 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 Abrdn Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Claymore and abrdn Physical Precious, you can compare the effects of market volatilities on Western Asset and Abrdn Physical 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 Abrdn Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Abrdn Physical.
Diversification Opportunities for Western Asset and Abrdn Physical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Abrdn is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Claymore and abrdn Physical Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Physical Precious 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 Claymore are associated (or correlated) with Abrdn Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Physical Precious has no effect on the direction of Western Asset i.e., Western Asset and Abrdn Physical go up and down completely randomly.
Pair Corralation between Western Asset and Abrdn Physical
Considering the 90-day investment horizon Western Asset is expected to generate 2.96 times less return on investment than Abrdn Physical. But when comparing it to its historical volatility, Western Asset Claymore is 1.99 times less risky than Abrdn Physical. It trades about 0.05 of its potential returns per unit of risk. abrdn Physical Precious is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,368 in abrdn Physical Precious on November 19, 2024 and sell it today you would earn a total of 3,725 from holding abrdn Physical Precious or generate 44.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Claymore vs. abrdn Physical Precious
Performance |
| Timeline |
| Western Asset Claymore |
| abrdn Physical Precious |
Western Asset and Abrdn Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Abrdn Physical
The main advantage of trading using opposite Western Asset and Abrdn Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Abrdn Physical 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 Abrdn Physical will offset losses from the drop in Abrdn Physical's long position.| Western Asset vs. The Gabelli Equity | Western Asset vs. Eaton Vance National | Western Asset vs. Structured Products Corp | Western Asset vs. Aberdeen Standard Global |
| Abrdn Physical vs. abrdn Physical Palladium | Abrdn Physical vs. abrdn Physical Platinum | Abrdn Physical vs. abrdn Physical Silver | Abrdn Physical vs. abrdn Physical Gold |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |