Correlation Between Western Asset and Retireful
Can any of the company-specific risk be diversified away by investing in both Western Asset and Retireful 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 Retireful 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 Retireful, you can compare the effects of market volatilities on Western Asset and Retireful 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 Retireful. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Retireful.
Diversification Opportunities for Western Asset and Retireful
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Retireful is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Claymore and Retireful in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retireful 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 Retireful. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retireful has no effect on the direction of Western Asset i.e., Western Asset and Retireful go up and down completely randomly.
Pair Corralation between Western Asset and Retireful
Considering the 90-day investment horizon Western Asset is expected to generate 3.51 times less return on investment than Retireful. But when comparing it to its historical volatility, Western Asset Claymore is 1.86 times less risky than Retireful. It trades about 0.13 of its potential returns per unit of risk. Retireful is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,089 in Retireful on September 3, 2024 and sell it today you would earn a total of 78.00 from holding Retireful or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 34.38% |
| Values | Daily Returns |
Western Asset Claymore vs. Retireful
Performance |
| Timeline |
| Western Asset Claymore |
| Retireful |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Western Asset and Retireful Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Retireful
The main advantage of trading using opposite Western Asset and Retireful positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Retireful 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 Retireful will offset losses from the drop in Retireful's long position.| Western Asset vs. Brookfield Real Assets | Western Asset vs. Guggenheim Strategic Opportunities | Western Asset vs. Cornerstone Strategic Return | Western Asset vs. Cornerstone Strategic Value |
| Retireful vs. Collaborative Investment Series | Retireful vs. Collaborative Investment Series | Retireful vs. Grizzle Growth ETF | Retireful vs. Hartford Large Cap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |