Correlation Between Western Asset and Hotchkis Wiley
Can any of the company-specific risk be diversified away by investing in both Western Asset and Hotchkis Wiley 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 Hotchkis Wiley 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 Hotchkis Wiley Mid Cap, you can compare the effects of market volatilities on Western Asset and Hotchkis Wiley 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 Hotchkis Wiley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Hotchkis Wiley.
Diversification Opportunities for Western Asset and Hotchkis Wiley
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Hotchkis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Hotchkis Wiley Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotchkis Wiley Mid 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 Hotchkis Wiley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotchkis Wiley Mid has no effect on the direction of Western Asset i.e., Western Asset and Hotchkis Wiley go up and down completely randomly.
Pair Corralation between Western Asset and Hotchkis Wiley
If you would invest 723.00 in Western Asset Municipal on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Western Asset Municipal or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Western Asset Municipal vs. Hotchkis Wiley Mid Cap
Performance |
| Timeline |
| Western Asset Municipal |
| Hotchkis Wiley Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Hotchkis Wiley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Hotchkis Wiley
The main advantage of trading using opposite Western Asset and Hotchkis Wiley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Hotchkis Wiley 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 Hotchkis Wiley will offset losses from the drop in Hotchkis Wiley's long position.| Western Asset vs. Rbc Microcap Value | Western Asset vs. Balanced Fund Investor | Western Asset vs. Scharf Global Opportunity | Western Asset vs. Materials Portfolio Fidelity |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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