Correlation Between Western Asset and Mainstay Defensive
Can any of the company-specific risk be diversified away by investing in both Western Asset and Mainstay Defensive 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 Mainstay Defensive 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 Mainstay Defensive Etf, you can compare the effects of market volatilities on Western Asset and Mainstay Defensive 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 Mainstay Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Mainstay Defensive.
Diversification Opportunities for Western Asset and Mainstay Defensive
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Mainstay is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Mainstay Defensive Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Defensive Etf 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 Mainstay Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Defensive Etf has no effect on the direction of Western Asset i.e., Western Asset and Mainstay Defensive go up and down completely randomly.
Pair Corralation between Western Asset and Mainstay Defensive
If you would invest 1,549 in Western Asset Diversified on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Western Asset Diversified or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Western Asset Diversified vs. Mainstay Defensive Etf
Performance |
| Timeline |
| Western Asset Diversified |
| Mainstay Defensive Etf |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Mainstay Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Mainstay Defensive
The main advantage of trading using opposite Western Asset and Mainstay Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Mainstay Defensive 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 Mainstay Defensive will offset losses from the drop in Mainstay Defensive'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 |
| Mainstay Defensive vs. Cref Money Market | Mainstay Defensive vs. Chestnut Street Exchange | Mainstay Defensive vs. Edward Jones Money | Mainstay Defensive vs. Dws Government Money |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |