Correlation Between Western Asset and Siit Opportunistic
Can any of the company-specific risk be diversified away by investing in both Western Asset and Siit Opportunistic 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 Opportunistic 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 Siit Opportunistic Income, you can compare the effects of market volatilities on Western Asset and Siit Opportunistic 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 Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Siit Opportunistic.
Diversification Opportunities for Western Asset and Siit Opportunistic
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Siit is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Siit Opportunistic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Opportunistic Income 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 Siit Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Opportunistic Income has no effect on the direction of Western Asset i.e., Western Asset and Siit Opportunistic go up and down completely randomly.
Pair Corralation between Western Asset and Siit Opportunistic
Assuming the 90 days horizon Western Asset is expected to generate 3.5 times less return on investment than Siit Opportunistic. In addition to that, Western Asset is 5.01 times more volatile than Siit Opportunistic Income. It trades about 0.03 of its total potential returns per unit of risk. Siit Opportunistic Income is currently generating about 0.54 per unit of volatility. If you would invest 740.00 in Siit Opportunistic Income on September 2, 2024 and sell it today you would earn a total of 67.00 from holding Siit Opportunistic Income or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Diversified vs. Siit Opportunistic Income
Performance |
| Timeline |
| Western Asset Diversified |
| Siit Opportunistic Income |
Western Asset and Siit Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Siit Opportunistic
The main advantage of trading using opposite Western Asset and Siit Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Siit Opportunistic 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 Opportunistic will offset losses from the drop in Siit Opportunistic's long position.| Western Asset vs. Morningstar Unconstrained Allocation | Western Asset vs. Old Westbury Large | Western Asset vs. T Rowe Price | Western Asset vs. Enhanced Large Pany |
| Siit Opportunistic vs. Simt Multi Asset Accumulation | Siit Opportunistic vs. Saat Market Growth | Siit Opportunistic vs. Simt Real Return | Siit Opportunistic vs. Simt 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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