Correlation Between Western Asset and Intrepid Capital
Can any of the company-specific risk be diversified away by investing in both Western Asset and Intrepid Capital 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 Intrepid Capital 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 Intrepid Capital Fund, you can compare the effects of market volatilities on Western Asset and Intrepid Capital 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 Intrepid Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Intrepid Capital.
Diversification Opportunities for Western Asset and Intrepid Capital
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Intrepid is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Intrepid Capital Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Capital 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 Intrepid Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Capital has no effect on the direction of Western Asset i.e., Western Asset and Intrepid Capital go up and down completely randomly.
Pair Corralation between Western Asset and Intrepid Capital
Assuming the 90 days horizon Western Asset is expected to generate 23.17 times less return on investment than Intrepid Capital. But when comparing it to its historical volatility, Western Asset Municipal is 1.87 times less risky than Intrepid Capital. It trades about 0.03 of its potential returns per unit of risk. Intrepid Capital Fund is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,224 in Intrepid Capital Fund on August 30, 2024 and sell it today you would earn a total of 85.00 from holding Intrepid Capital Fund or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Municipal vs. Intrepid Capital Fund
Performance |
| Timeline |
| Western Asset Municipal |
| Intrepid Capital |
Western Asset and Intrepid Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Intrepid Capital
The main advantage of trading using opposite Western Asset and Intrepid Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Intrepid Capital 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 Intrepid Capital will offset losses from the drop in Intrepid Capital's long position.| Western Asset vs. Ab Small Cap | Western Asset vs. Pace Smallmedium Value | Western Asset vs. Victory Rs Partners | Western Asset vs. Vanguard Small Cap Value |
| Intrepid Capital vs. Ab Value Fund | Intrepid Capital vs. Iaadx | Intrepid Capital vs. Western Asset Municipal | Intrepid Capital vs. Materials Portfolio Fidelity |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |