Correlation Between Western Asset and Delaware High
Can any of the company-specific risk be diversified away by investing in both Western Asset and Delaware High 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 Delaware High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Municipal and Delaware High Yield Opportunities, you can compare the effects of market volatilities on Western Asset and Delaware High 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 Delaware High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Delaware High.
Diversification Opportunities for Western Asset and Delaware High
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Delaware is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Delaware High Yield Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware High Yield 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 Municipal are associated (or correlated) with Delaware High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware High Yield has no effect on the direction of Western Asset i.e., Western Asset and Delaware High go up and down completely randomly.
Pair Corralation between Western Asset and Delaware High
If you would invest 726.00 in Western Asset Municipal on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Western Asset Municipal or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Western Asset Municipal vs. Delaware High Yield Opportunit
Performance |
| Timeline |
| Western Asset Municipal |
| Delaware High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Delaware High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Delaware High
The main advantage of trading using opposite Western Asset and Delaware High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Delaware High 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 Delaware High will offset losses from the drop in Delaware High's long position.| Western Asset vs. Barings Active Short | Western Asset vs. Cmg Ultra Short | Western Asset vs. Blackrock Short Term Inflat Protected | Western Asset vs. Rbc Short Duration |
| Delaware High vs. T Rowe Price | Delaware High vs. Western Asset Municipal | Delaware High vs. Alliancebernstein National Municipal | Delaware High vs. Bbh Intermediate Municipal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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