Correlation Between Western Asset and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Western Asset and Eagle Mid 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 Eagle Mid 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 Eagle Mid Cap, you can compare the effects of market volatilities on Western Asset and Eagle Mid 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 Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Eagle Mid.
Diversification Opportunities for Western Asset and Eagle Mid
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and EAGLE is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap 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 Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Western Asset i.e., Western Asset and Eagle Mid go up and down completely randomly.
Pair Corralation between Western Asset and Eagle Mid
If you would invest 1,539 in Western Asset Diversified on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Western Asset Diversified or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Western Asset Diversified vs. Eagle Mid Cap
Performance |
| Timeline |
| Western Asset Diversified |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Eagle Mid
The main advantage of trading using opposite Western Asset and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid'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 |
| Eagle Mid vs. Western Asset Diversified | Eagle Mid vs. Massmutual Premier Diversified | Eagle Mid vs. Delaware Limited Term Diversified | Eagle Mid vs. Prudential Core Conservative |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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