Western Asset Beta vs. Three Year Return
| EMD Fund | USD 10.09 0.04 0.39% |
For Western Asset profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Asset to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Western Asset Emerging utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Asset's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Western Asset Emerging over time as well as its relative position and ranking within its peers.
Western |
Western Asset Emerging Three Year Return vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Western Asset's current stock value. Our valuation model uses many indicators to compare Western Asset value to that of its competitors to determine the firm's financial worth. Western Asset Emerging is rated # 2 fund in beta among similar funds. It is rated # 4 fund in three year return among similar funds reporting about 1.90 of Three Year Return per Beta. Comparative valuation analysis is a catch-all technique that is used if you cannot value Western Asset by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Western Three Year Return vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Western Asset |
| = | 0.82 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Tree Year Return shows the total annualized return generated from holding a fund or ETFs for the last three years. The return measure includes capital appreciation, losses, dividends paid, and all capital gains distributions. This return indicator is considered by many investors to be solid measures of fund mid-term performance.
Western Asset |
| = | 1.56 % |
Although Three Year Fund Return indicator can give a sense of overall fund mid-term potential, it is recommended to compare fund performances against other similar funds, ETFs, or market benchmarks for the same 3 year interval.
Western Three Year Return Comparison
Western Asset is currently under evaluation in three year return among similar funds.
Beta Analysis
As returns on the market increase, Western Asset's returns are expected to increase less than the market. However, during the bear market, the loss of holding Western Asset is expected to be smaller as well.
Western Asset Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Western Asset, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Asset will eventually generate negative long term returns. The profitability progress is the general direction of Western Asset's change in net profit over the period of time. It can combine multiple indicators of Western Asset, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Western Asset Emerging Markets Debt Fund Inc. is an open ended fixed-income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Western Asset Management Company, Western Asset Management Company Limited and Western Asset Management Company Pte. Ltd. The fund invests in fixed income markets of emerging market countries across the globe. It seeks to invest in fixed income securities issued by governments, government-related entities, and corporations which are of any maturity and quality. The fund employs fundamental analysis along with a top-down security picking approach focusing on factors like currency, inflation and interest rate trends, growth rate forecasts, liquidity of markets for that countrys debt, political outlook, tax environment to create its portfolio. It benchmarks the performance of its portfolio against the JPMorgan Emerging Markets Bond Index Global. The fund was formerly known as Salomon Brothers Emerging Markets Debt Fund Inc. Western Asset Emerging Markets Debt Fund Inc. was formed on December 1, 2003 and is domiciled in the United States.
Western Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Western Asset. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Western Asset position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Western Asset's important profitability drivers and their relationship over time.
Use Western Asset in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Western Asset position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Western Asset Pair Trading
Western Asset Emerging Pair Trading Analysis
The ability to find closely correlated positions to Western Asset could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Asset when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Western Asset - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Western Asset Emerging to buy it.
The correlation of Western Asset is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Western Asset moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Asset Emerging moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Western Asset can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Western Asset position
In addition to having Western Asset in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Stores Thematic Idea Now
Stores
Companies providing different types of retail and wholesale services. The Stores theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Stores Theme or any other thematic opportunities.
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Other Information on Investing in Western Fund
To fully project Western Asset's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Western Asset Emerging at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Western Asset's income statement, its balance sheet, and the statement of cash flows.
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