Correlation Between Western Asset and Invesco Peak
Can any of the company-specific risk be diversified away by investing in both Western Asset and Invesco Peak 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 Invesco Peak 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 Invesco Peak Retirement, you can compare the effects of market volatilities on Western Asset and Invesco Peak 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 Invesco Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Invesco Peak.
Diversification Opportunities for Western Asset and Invesco Peak
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Invesco is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Invesco Peak Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Peak Retirement 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 Invesco Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Peak Retirement has no effect on the direction of Western Asset i.e., Western Asset and Invesco Peak go up and down completely randomly.
Pair Corralation between Western Asset and Invesco Peak
If you would invest 1,507 in Western Asset Diversified on September 4, 2024 and sell it today you would earn a total of 42.00 from holding Western Asset Diversified or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
Western Asset Diversified vs. Invesco Peak Retirement
Performance |
| Timeline |
| Western Asset Diversified |
| Invesco Peak Retirement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Invesco Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Invesco Peak
The main advantage of trading using opposite Western Asset and Invesco Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Invesco Peak 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 Invesco Peak will offset losses from the drop in Invesco Peak's long position.| Western Asset vs. Dreyfusstandish Global Fixed | Western Asset vs. Franklin Mutual Global | Western Asset vs. Commonwealth Global Fund | Western Asset vs. Scharf Global Opportunity |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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