Correlation Between Western Asset and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Western Asset and Amg Southernsun 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 Amg Southernsun 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 Amg Southernsun Equity, you can compare the effects of market volatilities on Western Asset and Amg Southernsun 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 Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Amg Southernsun.
Diversification Opportunities for Western Asset and Amg Southernsun
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Amg is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Amg Southernsun Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Equity 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 Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Equity has no effect on the direction of Western Asset i.e., Western Asset and Amg Southernsun go up and down completely randomly.
Pair Corralation between Western Asset and Amg Southernsun
Assuming the 90 days horizon Western Asset is expected to generate 5.03 times less return on investment than Amg Southernsun. But when comparing it to its historical volatility, Western Asset Diversified is 3.41 times less risky than Amg Southernsun. It trades about 0.03 of its potential returns per unit of risk. Amg Southernsun Equity is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,269 in Amg Southernsun Equity on September 12, 2024 and sell it today you would earn a total of 271.00 from holding Amg Southernsun Equity or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Diversified vs. Amg Southernsun Equity
Performance |
| Timeline |
| Western Asset Diversified |
| Amg Southernsun Equity |
Western Asset and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Amg Southernsun
The main advantage of trading using opposite Western Asset and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Amg Southernsun 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 Amg Southernsun will offset losses from the drop in Amg Southernsun'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 |
| Amg Southernsun vs. Elfun Diversified Fund | Amg Southernsun vs. Western Asset Diversified | Amg Southernsun vs. Blackrock Conservative Prprdptfinstttnl | Amg Southernsun vs. Calvert Conservative Allocation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |