Correlation Between Winmill Co and Western Asset

Can any of the company-specific risk be diversified away by investing in both Winmill Co 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 Winmill Co and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Winmill Co Incorporated and Western Asset Municipal, you can compare the effects of market volatilities on Winmill Co 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 Winmill Co with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winmill Co and Western Asset.

Diversification Opportunities for Winmill Co and Western Asset

0.0

Correlation Coefficient

Winmill Co  Western Asset

Pay attention - limited upside

The 3 months correlation between Winmill and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Winmill Co Incorporated and Western Asset Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Municipal and Winmill Co 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 Winmill Co Incorporated 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 Municipal has no effect on the direction of Winmill Co i.e., Winmill Co and Western Asset go up and down completely randomly.

Pair Corralation between Winmill Co and Western Asset

If you would invest  678.00  in Western Asset Municipal on December 29, 2024 and sell it today you would earn a total of  64.00  from holding Western Asset Municipal or generate 9.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Winmill Co Incorporated  vs.  Western Asset Municipal

Winmill Co

Risk-Adjusted Performance

Very Weak

Over the last 90 days Winmill Co Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Winmill Co is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Western Asset Municipal

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Western Asset Municipal are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly uncertain technical indicators, Western Asset may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Winmill Co and Western Asset

The main advantage of trading using opposite Winmill Co and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winmill Co 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.

The idea behind Winmill Co Incorporated and Western Asset Municipal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.