Correlation Between Western Asset and Gmo Us
Can any of the company-specific risk be diversified away by investing in both Western Asset and Gmo Us 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 Gmo Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Municipal and Gmo Treasury Fund, you can compare the effects of market volatilities on Western Asset and Gmo Us 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 Gmo Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Gmo Us.
Diversification Opportunities for Western Asset and Gmo Us
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Gmo is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Gmo Treasury Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Treasury 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 Municipal are associated (or correlated) with Gmo Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Treasury has no effect on the direction of Western Asset i.e., Western Asset and Gmo Us go up and down completely randomly.
Pair Corralation between Western Asset and Gmo Us
If you would invest 501.00 in Gmo Treasury Fund on December 7, 2024 and sell it today you would earn a total of 0.00 from holding Gmo Treasury Fund or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Western Asset Municipal vs. Gmo Treasury Fund
Performance |
Timeline |
Western Asset Municipal |
Gmo Treasury |
Western Asset and Gmo Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Asset and Gmo Us
The main advantage of trading using opposite Western Asset and Gmo Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Gmo Us 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 Gmo Us will offset losses from the drop in Gmo Us' 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 |
Gmo Us vs. Scharf Global Opportunity | Gmo Us vs. Vanguard Intermediate Term Bond | Gmo Us vs. Gmo Quality Fund | Gmo Us vs. Aam Select Income |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |