Correlation Between Western Asset and Catalystexceed Defined
Can any of the company-specific risk be diversified away by investing in both Western Asset and Catalystexceed Defined 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 Catalystexceed Defined 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 Catalystexceed Defined Shield, you can compare the effects of market volatilities on Western Asset and Catalystexceed Defined 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 Catalystexceed Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Catalystexceed Defined.
Diversification Opportunities for Western Asset and Catalystexceed Defined
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Catalystexceed is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Catalystexceed Defined Shield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystexceed Defined 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 Catalystexceed Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystexceed Defined has no effect on the direction of Western Asset i.e., Western Asset and Catalystexceed Defined go up and down completely randomly.
Pair Corralation between Western Asset and Catalystexceed Defined
Assuming the 90 days horizon Western Asset Municipal is expected to under-perform the Catalystexceed Defined. But the mutual fund apears to be less risky and, when comparing its historical volatility, Western Asset Municipal is 1.76 times less risky than Catalystexceed Defined. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Catalystexceed Defined Shield is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 879.00 in Catalystexceed Defined Shield on September 14, 2024 and sell it today you would earn a total of 109.00 from holding Catalystexceed Defined Shield or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Municipal vs. Catalystexceed Defined Shield
Performance |
| Timeline |
| Western Asset Municipal |
| Catalystexceed Defined |
Western Asset and Catalystexceed Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Catalystexceed Defined
The main advantage of trading using opposite Western Asset and Catalystexceed Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Catalystexceed Defined 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 Catalystexceed Defined will offset losses from the drop in Catalystexceed Defined's long position.| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
| Catalystexceed Defined vs. Guidemark Smallmid Cap | Catalystexceed Defined vs. Vy Columbia Small | Catalystexceed Defined vs. Lebenthal Lisanti Small | Catalystexceed Defined vs. Scout Small Cap |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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