Correlation Between Western Assets and Blackrock International
Can any of the company-specific risk be diversified away by investing in both Western Assets and Blackrock International 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 Assets and Blackrock International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Assets Emerging and Blackrock International Impact, you can compare the effects of market volatilities on Western Assets and Blackrock International 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 Assets with a short position of Blackrock International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Assets and Blackrock International.
Diversification Opportunities for Western Assets and Blackrock International
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Blackrock is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Western Assets Emerging and Blackrock International Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock International and Western Assets 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 Assets Emerging are associated (or correlated) with Blackrock International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock International has no effect on the direction of Western Assets i.e., Western Assets and Blackrock International go up and down completely randomly.
Pair Corralation between Western Assets and Blackrock International
If you would invest 1,066 in Western Assets Emerging on September 5, 2024 and sell it today you would earn a total of 13.00 from holding Western Assets Emerging or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Western Assets Emerging vs. Blackrock International Impact
Performance |
| Timeline |
| Western Assets Emerging |
| Blackrock International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Assets and Blackrock International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Assets and Blackrock International
The main advantage of trading using opposite Western Assets and Blackrock International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Assets position performs unexpectedly, Blackrock International 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 Blackrock International will offset losses from the drop in Blackrock International's long position.| Western Assets vs. Amg Managers Centersquare | Western Assets vs. Franklin Real Estate | Western Assets vs. Franklin Real Estate | Western Assets vs. Columbia Real Estate |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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