Correlation Between Western Asset and Allianzgi Diversified
Can any of the company-specific risk be diversified away by investing in both Western Asset and Allianzgi Diversified 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 Allianzgi Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Allianzgi Diversified Income, you can compare the effects of market volatilities on Western Asset and Allianzgi Diversified 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 Allianzgi Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Allianzgi Diversified.
Diversification Opportunities for Western Asset and Allianzgi Diversified
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Allianzgi is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Allianzgi Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Diversified 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 Diversified are associated (or correlated) with Allianzgi Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Diversified has no effect on the direction of Western Asset i.e., Western Asset and Allianzgi Diversified go up and down completely randomly.
Pair Corralation between Western Asset and Allianzgi Diversified
Assuming the 90 days horizon Western Asset is expected to generate 33.87 times less return on investment than Allianzgi Diversified. But when comparing it to its historical volatility, Western Asset Diversified is 3.49 times less risky than Allianzgi Diversified. It trades about 0.01 of its potential returns per unit of risk. Allianzgi Diversified Income is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,824 in Allianzgi Diversified Income on September 12, 2024 and sell it today you would earn a total of 508.00 from holding Allianzgi Diversified Income or generate 27.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Western Asset Diversified vs. Allianzgi Diversified Income
Performance |
| Timeline |
| Western Asset Diversified |
| Allianzgi Diversified |
Western Asset and Allianzgi Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Allianzgi Diversified
The main advantage of trading using opposite Western Asset and Allianzgi Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Allianzgi Diversified 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 Allianzgi Diversified will offset losses from the drop in Allianzgi Diversified'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 |
| Allianzgi Diversified vs. Brookfield Business Corp | Allianzgi Diversified vs. Elysee Development Corp | Allianzgi Diversified vs. DWS Municipal Income | Allianzgi Diversified vs. Blackrock Munivest |
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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