Correlation Between Western Asset and Blackrock Balanced
Can any of the company-specific risk be diversified away by investing in both Western Asset and Blackrock Balanced 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 Blackrock Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Inflation and Blackrock Balanced Capital, you can compare the effects of market volatilities on Western Asset and Blackrock Balanced 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 Blackrock Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Blackrock Balanced.
Diversification Opportunities for Western Asset and Blackrock Balanced
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Blackrock is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and Blackrock Balanced Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Balanced 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 Inflation are associated (or correlated) with Blackrock Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Balanced has no effect on the direction of Western Asset i.e., Western Asset and Blackrock Balanced go up and down completely randomly.
Pair Corralation between Western Asset and Blackrock Balanced
Assuming the 90 days horizon Western Asset Inflation is expected to generate 0.25 times more return on investment than Blackrock Balanced. However, Western Asset Inflation is 3.93 times less risky than Blackrock Balanced. It trades about -0.38 of its potential returns per unit of risk. Blackrock Balanced Capital is currently generating about -0.28 per unit of risk. If you would invest 938.00 in Western Asset Inflation on September 26, 2024 and sell it today you would lose (19.00) from holding Western Asset Inflation or give up 2.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Western Asset Inflation vs. Blackrock Balanced Capital
Performance |
Timeline |
Western Asset Inflation |
Blackrock Balanced |
Western Asset and Blackrock Balanced Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Asset and Blackrock Balanced
The main advantage of trading using opposite Western Asset and Blackrock Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Blackrock Balanced 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 Blackrock Balanced will offset losses from the drop in Blackrock Balanced's long position.Western Asset vs. Janus High Yield Fund | Western Asset vs. Guggenheim High Yield | Western Asset vs. Virtus High Yield | Western Asset vs. Buffalo High Yield |
Blackrock Balanced vs. Blackrock California Municipal | Blackrock Balanced vs. Blackrock Eurofund Class | Blackrock Balanced vs. Blackrock Funds | Blackrock Balanced vs. Blackrock Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |