Correlation Between Winmill Co and Western Asset
Can any of the company-specific risk be diversified away by investing in both Winmill Co and Western Asset 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 Winmill Co and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winmill Co Incorporated and Western Asset Municipal, you can compare the effects of market volatilities on Winmill Co and Western Asset 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 Winmill Co with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winmill Co and Western Asset.
Diversification Opportunities for Winmill Co and Western Asset
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Winmill and Western is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Winmill Co Incorporated and Western Asset Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Municipal and Winmill Co 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 Winmill Co Incorporated are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Municipal has no effect on the direction of Winmill Co i.e., Winmill Co and Western Asset go up and down completely randomly.
Pair Corralation between Winmill Co and Western Asset
If you would invest 694.00 in Western Asset Municipal on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Western Asset Municipal or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Winmill Co Incorporated vs. Western Asset Municipal
Performance |
| Timeline |
| Winmill Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Western Asset Municipal |
Winmill Co and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winmill Co and Western Asset
The main advantage of trading using opposite Winmill Co and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winmill Co position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Winmill Co vs. Virtus Dividend Interest | Winmill Co vs. Central Securities | Winmill Co vs. Aberdeen International | Winmill Co vs. Bimini Capital Management |
| Western Asset vs. Western Asset Managed | Western Asset vs. Blackrock Muniholdings Quality | Western Asset vs. DTF Tax Free | Western Asset vs. John Hancock Income |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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