Correlation Between Ab All and Western Asset
Can any of the company-specific risk be diversified away by investing in both Ab All and Western Asset 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 Ab All and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab All Market and Western Asset Diversified, you can compare the effects of market volatilities on Ab All and Western Asset 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 Ab All with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab All and Western Asset.
Diversification Opportunities for Ab All and Western Asset
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMTOX and Western is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ab All Market and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified and Ab All 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 Ab All Market are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Diversified has no effect on the direction of Ab All i.e., Ab All and Western Asset go up and down completely randomly.
Pair Corralation between Ab All and Western Asset
Assuming the 90 days horizon Ab All Market is expected to generate 2.16 times more return on investment than Western Asset. However, Ab All is 2.16 times more volatile than Western Asset Diversified. It trades about 0.13 of its potential returns per unit of risk. Western Asset Diversified is currently generating about -0.01 per unit of risk. If you would invest 873.00 in Ab All Market on December 28, 2024 and sell it today you would earn a total of 38.00 from holding Ab All Market or generate 4.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Ab All Market vs. Western Asset Diversified
Performance |
Timeline |
Ab All Market |
Western Asset Diversified |
Ab All and Western Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ab All and Western Asset
The main advantage of trading using opposite Ab All and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab All position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.Ab All vs. Versatile Bond Portfolio | Ab All vs. Ab Bond Inflation | Ab All vs. Ishares Aggregate Bond | Ab All vs. Goldman Sachs Short |
Western Asset vs. Ft 9331 Corporate | Western Asset vs. Intermediate Bond Fund | Western Asset vs. Ab Bond Inflation | Western Asset vs. Gmo High Yield |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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