Correlation Between Western Asset and Siit Real
Can any of the company-specific risk be diversified away by investing in both Western Asset and Siit Real 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 Siit Real 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 Siit Real Return, you can compare the effects of market volatilities on Western Asset and Siit Real 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 Siit Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Siit Real.
Diversification Opportunities for Western Asset and Siit Real
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Siit is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Siit Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Real Return 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 Siit Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Real Return has no effect on the direction of Western Asset i.e., Western Asset and Siit Real go up and down completely randomly.
Pair Corralation between Western Asset and Siit Real
Assuming the 90 days horizon Western Asset is expected to generate 26.0 times less return on investment than Siit Real. In addition to that, Western Asset is 3.31 times more volatile than Siit Real Return. It trades about 0.0 of its total potential returns per unit of risk. Siit Real Return is currently generating about 0.14 per unit of volatility. If you would invest 917.00 in Siit Real Return on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Siit Real Return or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Municipal vs. Siit Real Return
Performance |
| Timeline |
| Western Asset Municipal |
| Siit Real Return |
Western Asset and Siit Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Siit Real
The main advantage of trading using opposite Western Asset and Siit Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Siit Real 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 Siit Real will offset losses from the drop in Siit Real's long position.| Western Asset vs. T Rowe Price | Western Asset vs. Gamco Global Telecommunications | Western Asset vs. Oklahoma Municipal Fund | Western Asset vs. Vanguard Short Term Government |
| Siit Real vs. Nuveen Winslow Large Cap | Siit Real vs. Qs Large Cap | Siit Real vs. Rational Strategic Allocation | Siit Real vs. Old Westbury Large |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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